A recent analysis by credit rating agency S&P Global Ratings has revealed that new cyber insurance capacity is increasingly matching fast-growing demand, particularly within the United States, and greater competition is said to be leading to decreasing retention levels, as well as lower costs for coverage.
Cyber insurance remains one of the fastest-growing areas within the global insurance industry, with premiums anticipated to exceed $20 billion by 2025, up from an estimated $15 billion in 2023.
In late April, S&P held it’s latest Quarterly Cyber Focus conference, where the company provided an overview of the changing dynamics that they have seen across the cyber insurance market.
Manuel Adam, S&P Global Ratings Insurance Ratings analyst, commented: “S&P Global Ratings is closely monitoring any reduction of margins and potential negative impact this might have on our capital and earnings, and risk exposure assessments for rated insurers and reinsurers.”
Moreover, discussions at the conference also focused on the evolution of cyber risk underwriting, which has enhanced traditional qualitative research with tools that enable data-driven scenario analysis.
S&P explained…
