The cyber risk market still needs more reinsurance capacity as demand for cyber insurance products has tripled in just four years.
That was the view of Antony Cordonnier, managing director and global co-head of cyber at Guy Carpenter, who was speaking at the Intelligent Insurer Cyber Risk & Insurance Innovation Europe today.
Cordonnier said global premium had grown from $5 billion in 2019 to an estimated $15.5 billion in 2023 while reinsurance limits had only doubled.
He said the slower increase in reinsurance capacity was due to a lack of supply caused in part by a lack of reliable data, although he also noted that the level of reinsurance for cyber was comparatively high at 45%, down from 55% in a smaller market in 2019.
He said traditional sources of reinsurance had been supportive but he thought there was more room to grow through third party capital and insurance-linked securities.
Cordonnier told the 200 delegates that growth in the market had been “seismic” as economies became more digitised, regulatory requirements for cyber risk protection grew and clients were more sophisticated in their expectations as well, he said.
In addition, the variety of insurance…
