PHILADELPHIA — Underwriting discipline must persist in the commercial cyber insurance market as the frequency and severity of losses rise, according to insurance industry executives who spoke Tuesday at the 2024 NetDiligence annual cyber summit in Philadelphia.
Meanwhile, cyber pricing and rates have softened and remain favorable to buyers.
Longer term, executives see the market continuing to grow but say it will require fuel in the form of capital to do so.
Current market pricing is sustainable, “but deterioration of underwriting discipline and market conditions is starting to show in some really concerning areas,” such as the large account space, said Jeff Kulikowski, New York-based executive vice president, professional lines, for Westfield Specialty, a unit of Westfield Insurance Co.
Mr. Kulikowski said insurers are putting out bigger limits at lower price points as the loss environment worsens from a frequency and severity point of view.
Larger and more frequent events could hinder the sector’s profitability, the executives said.
“There’s a little bit of uncertainty that could sort of tip some of these carriers from a profitable territory into an…
