The attacks are driving better underwriting and higher premiums with sustainable loss ratios, despite media reports of major disruptions and high ransoms.
“In a way, the headlines are right — loss ratios have increased. But at a 67% loss ratio for 2020 (according to Aon), one year of losses in line with other typical lines of business after years of stellar profitability doesn’t mean the sky is falling. Things may get slightly worse before they get better (Q4 was a particularly heavy quarter for cyber claims) but when coupled with 26% pricing increases (which also look set to endure and in many cases are even higher), this will be an event that bolsters insurer profitability and top-line growth. Ransomware losses are not undermining the sustainability of cyber insurance,” claims the CEO.
Source: Ransomware losses are not undermining the sustainability of cyber insurance