Skyrocketing cyber insurance rates have many wondering if a federal backstop is needed. Experts say we need to tackle cybersecurity controls first.
Insureds felt the pain of major cyber insurance rate increases in 2021 and 2022. Premiums jumped 50% in 2022, Bloomberg reported, as hackers launched more frequent ransomware attacks and other cyber intrusions.
The good news? We might be starting to see the calm after the storm.
Today, cyber insurance prices are moderating — rates flattened or decreased in 2023, even as the number of ransomware attacks rose — and are expected to continue to stabilize into 2024. Still, some insureds are concerned about how the line will mature and whether more support is needed.
“While we have insights from the past, predicting the future is difficult,” said Michelle Chia, chief underwriting officer for cyber in the Americas at AXA XL.
Enter public-private partnerships. Governments and insurers can work together to foster stability in the cyber space. A mix of regulations and a (potential) government backstop could provide needed protections now that cyber is a risk that affects every…
