Call us now:
The cyber insurance market has the potential for growth, but is it growth the insurance industry is yet set to manage? If the figures in the enclosed report are near true, then GWP will increase from USD 5.8 billion is 2019 to USB 33.3 billion in 2027. Does the industry have the capacity to meet this growth in demand. Does it have the ability to raise the necessary regulatory capital to underwrite what is in effect 475% increase in GRP.
The cyber insurance market is doing better in 2023 vs. 2022 due to premium increases, reduced coverage and exclusion clauses. But the uptake of cyber insurance is low, e.g. for UK SMEs is less than 40% (Insurance Times October 2022). In ones opinion loss ratios are falling more in line with the above than better risk management by the insured. Can organizations address the coverage gap today and when cyber regulation kicks in (increased costs)?
Currently the insurance industry does not have access to the data needed to effectively underwrite cyber. It does not understand the risk profile of its clients, as many of the insured do not understand their own cyber risk profile. the insurance industry does not have access to the resources necessary to adequately price cyber risk, as resources are consumed in other industry sectors, limiting market growth.
The report addresses cyber insurance as being an opportunity to the industry, in building closer relationships between the insurer and insured. In ones opinion this is correct and a great opportunity and a process and program we wrote in 2022 and 2023. Increased cyber regulation shifts cyber risk management to the board, increasing opportunities for insurers to support the insured manage cyber risk and collect the data needed to better underwrite cyber insurance,
Ted Dziekanowski
#cyberinsurance #cyberriskmanagement #cybersecurity
View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3AugcPost%3A7069653548648525824