Judy Selby’s Post

Rates have continued to drop in 2024, especially in higher excess layers due to new market capacity. Despite this, cyber insurance portfolios are performing well: the average loss ratio for the top 20 US cyber insurers in 2023 was just under 43%, according to the NAIC. Although competition has increased, underwriting discipline has remained strong. Insureds who have invested in cybersecurity, improved access management controls, and backup strategies have significantly reduced both the frequency and severity of claims. Cyber risks are becoming more manageable, and insurers’ ability to understand and select these risks is improving. However, cyber insurance penetration remains very low, especially outside the US and among small and medium-sized enterprises (SMEs). I would add the following: - Another important (continuing) trend is the increase in supply chain attacks, such as Snowflake and MOVEit, where a single event can affect a number of parties. - Despite more cyber extortion incidents, less insured companies are paying (in part due to better maturity) - The impact of AI on both attackers and defenders will become increasingly evident https://lnkd.in/erR8PdbA

We published our 2024 Cyber Insurance Market Conditions Outlook this week. Check out my perspectives on a wide variety of factors that are driving the market. These include insights into the 2024 cyber threat landscape, cyber claims trends, rising regulatory risk, evolving insurance products, capacity, the federal government response, and the key role of cyber reinsurance. The market is poised to grow exponentially. How large will it get and how fast will that happen? That will depend on a growing number of professionals in the cyber insurance ecosystem to forge ahead with innovation around advanced underwriting and loss modeling tools. Cyber insurance carriers, brokers, reinsurance providers, data scientists, analytics experts and cybersecurity vendors will all play key parts in its growth in the coming year. 

“Since the cyber insurance market size is projected to increase, with a compound annual growth rate of 26.1% in GWP until 2030, we believe ILS will likely play a crucial role in providing additional capital to support this growth. “Consequently, we anticipate that the momentum of recent catastrophe bond issuances will extend into 2024 and beyond.” #cyberinsurance

The role of insurance brokers is undergoing a profound transformation, particularly regarding cybersecurity. By shifting towards a more proactive and consultative approach, brokers can provide their clients with a deeper understanding of their insurance options and tailor solutions to their specific needs. This not only strengthens the relationship between broker and client but also ensures that clients are receiving the best coverage for their unique situations. #insuranceindustry #insurtech #insurancebroker #insuranceagents

An interesting article on retrocession insurance, as Swiss Re purchases the cyber market’s first retrocession industry loss warranty (ILW). The $50million ILW would appear to be a toe in the water for reinsurance, as the amount is not significant. But demonstrates another product for Swiss Re to balance up risks across its cyber book. It also a demonstrates of the complexity of building cyber risk management capital. Question: Are insurers simply moving the chairs around on the deck of the Titanic. Transferring cyber risk from one insurer to the next, from one product to the next? If the cyber insurance market wants to grow as predicted, does it have to find a radical solution to covering claims capital and regulatory capital. Or find solutions to enable their insured clients balance risk transfer more effectively outside of insurance? 'Right of Bang' risk management has not been profitable for cyber insurers, and with the continued Y-o-Y increase in cyber attack frequency, complexity and severity may not be. Ted Dziekanowski Brian D. McCarthy Rich Waite, M.Ed. George Sawyer Veritas GRC #cybersecurity #cyberinsurance #cyberriskmanagement #cyberregulation

Captive Review can reveal that Marsh has formed Edgware Re, a Bermuda-domiciled cyber-only group captive that will only transact business with its participating members All the key need-to-knows on Edgware Re can be found in our free-to-read article below https://lnkd.in/eSG8CTmW   But, for a more in-depth look at this new cyber group captive read our exclusive interview with Marsh Captive Solutions president Ellen Charnley here https://lnkd.in/enEdN3MK As well as further details on how the captive will operate and be capitalised, she reveals more about the first companies anticipated to become members, when she expects the captive to begin writing coverage, and details on Marsh’s growth in captive cyber premium during 2023 #captiveinsurance #insurance #cyber #bermuda #innovation

Cyber business interruption cover is an increasingly important insurance for businesses of all sizes. Yet, risk managers and insurance buyers within companies may find it difficult to gauge the right level of protection they need. For answers, read the insightful article by Laetitia Fouquet, Global Head of Cyber, in Insurance Edge on achieving better alignment in terms of remediation and settlement. #insuranceedge #cyberclaims

🤖 #CyberRiskInsurer: April 2024 issue out now! The #cyber insurance market continues to generate great excitement, and this is reflected in our coverage in this edition. But the market is not without its concerns. Download here – only available to subscribers 👇 https://lnkd.in/eud2cRfu This was underlined again during a state of the market panel at Zywave’s Cyber Risk London event last week, with Brit Insurance’s Ben Maidment warning the market is at a “dangerous inflection point” with the current softening in pricing “probably premature”. At the same event, a panel provided a bullish outlook for the growth of cyber cat bonds. GC Securities’ Carlo Magnani suggested the business could go “mainstream” and that “the idea is in three to five years to arrive in the billions”. As we highlight in an Editor’s Comment, excitement is certainly warranted – but there is a long way to go before cyber cat bonds fulfill their potential, with some investors still in need of convincing. In addition, we analyse a recent Munich Re report that forecast global cyber premiums will more than double to around $29bn by 2027, but warned that the resurgence in ransomware will continue to be the dominant loss driver. Also in the edition, we speak to Coalition, Inc.’s head of insurance Shawn Ram, who stressed that the insurtech feels no pressure to tee up its next liquidity event, and that it could potentially write reinsurance in the future. We also report on the continued fallout from the Change Healthcare cyberattack in our Behind the Breach section. The event has highlighted exposure to “mini-aggregated events” with some also suggesting it could impact pricing. In our Capacity and Coverage section, we round up: a Fitch Ratings analysis showing that the US cyber loss ratio held relatively steady last year but premium growth stalled; CRC figures showing a modest pick-up in E&S pricing in Q1; HSB launching cyber for auto coverage; Zywave unveiling a cyber quoting platform; and Hannover Re teaming up with Parametrix on the first cat bond to securitise cloud outage risk. In our Legal/regulatory section, we analyse newly proposed Cybersecurity & Infrastructure Security Agency rules for reporting cybersecurity incidents in the US, and highlight a recent ruling in favour of Blackbaud in a subrogation decision related to a ransomware attack. The issue also includes interviews with IQUW’s Tony Kriesel, Cyberwrite’s Nir Perry and Wilson Elser’s Dominik Cvitanovic. And in our Viewpoint segment, we hear from Liberty Mutual Insurance’s Gabriel Bassett on unsolved market problems, Arch Insurance International’s Marcus Breese on his company’s growth strategy, and Corvus Insurance’s Jason Rebholz on how hostile states are using GenAI. 📩 Get in touch with Michael Loney and James Thaler for story ideas, scoops and market intelligence: [email protected] [email protected] #insurance #reinsurance #cyberinsurance

Aftermath of the recent EDR debacle and the resulting outages will be substantial. Cyber insurance companies are now potentially on the hook. What will be the downstream impacts when all is said and done? My guess is this will take years to determine as I'm sure many companies will end up in litigation looking for recovery. Truly an unfortunate impact on WW economies and ultimately workers/families. https://lnkd.in/g3VVnB_m

Excellent article cyber BI is still very challenging