An increase in cyber-insurance claims in 2023, driven by a more active threat landscape, will likely mean that last year’s price plateau in cyber-insurance premium costs will be short-lived, according to industry experts.
While premium costs fell by 6% in the third quarter of 2023 compared with the same quarter in 2022, ransomware- and privacy-related claims had already skyrocketed from the previous year, according to risk management consultancy Marsh. While it’s unclear which direction insurance premiums will take in the next year, companies should expect cyber-insurance costs to rise in the next 12 to 24 months, says Roman Itskovich, chief risk officer and co-founder of At-Bay, a cyber-insurance and security startup.
“We’ve seen declines and average price to stabilize over the last couple of quarters,” he says. “So at the very least, I think that pricing is going to stay stable. I think that over the next two years prices are going to increase. I just don’t know when. I don’t think anyone knows that.”
The cost of cyber-insurance premiums typically lags changes in the threat landscape. In 2020 and 2021, for example, ransomware and other disruptive attacks surged, leading to…
