In this quarter’s update we look at the latest changes in premiums; insurers increase underwriting standards for cyber policies; and an expert advises privacy liability shouldn’t be overlooked when considering cyber insurance.
Cyber insurance prices in the United States rose 11% year over year on average in the first quarter of 2023 according to insurance broker Marsh. This was a noticeably smaller increase than the 28% rise in Q4 2022 and was the fifth straight quarter that prices rose by less than the previous quarter. Additionally, rate increases moderated during 2022, with an average increase of 17% in December 2022, which was down significantly from a December 2021 high average increase of 133%.
Marsh said increased competition, improved cybersecurity controls, and a reduction in ransomware attacks in 2022 were factors that affected the continued moderation in pricing, while noting there has been an upturn in ransomware incidents and claims since Q4 2022.
A recent press release from Fitch Ratings stated that cyber insurance is the fastest growing market segment in U.S. property and casualty, with rates expected to flatten further, barring numerous…
