Often, as we begin the annual march towards the January first reinsurance renewal, the current year— the ‘year in the middle’ — is forgotten.
In 2013, we talked about 2012 (Superstorm Sandy) and 2014 (what was to come). For the property-catastrophe folks, 2018 is shaping up in much the same way: there is plenty of 2017 activity to reflect on while we chart a path to 2019. Despite the fact that cyber is a new and emerging risk, it’s following the same pattern.
We saw plenty in 2017 to get us thinking about the 2019 renewal, and maybe this time around, we can make good use of the year in the middle.
The cyber insurance and reinsurance market is still small, and disproportionate loss years may not move the market as they would in more mature classes of business. However, active years do provide important learning opportunities that can help us prepare for major insured losses when cyber has grown a bit more.
Types of losses
In 2017, there were two loss types that could become problematic in the future. First, affirmative cyber risk losses were (relatively) plentiful. PCS Global Cyber recorded more than $400 million in such losses last year. Two companies affected by…
