WTW reports possible firming cyber insurance market later in 2024

WTW, a global insurance and reinsurance broker, observes that the cyber insurance market has remained stable in 2024, however, there’s a potential shift towards a firmer market later this year due to recent cyber events and the expanding cyber threat landscape.

Currently, primary and excess cyber renewals are staying level, and in some cases, even decreasing, with abundant capacity available.

WTW reports that premiums have remained steady in 2024, with any increases mainly affecting organisations lacking robust ransomware controls.

Underwriting decisions heavily consider a company’s security measures alongside pricing and attachment points.

Competition among markets is strong, leading to multiple quotes for certain risks, with existing insurers keen to retain business.

In the excess market, increased limit factors have decreased due to competition, with carriers undercutting each other.

There’s substantial capacity in the market, with carriers aiming to increase their participation in $10 million blocks on programs.

Many policyholders are choosing to either increase their coverage limits or lower their retentions when there are savings on renewals.

Carriers are becoming more flexible in underwriting, willing to consider borderline cases on applications.

Although the average ransomware payment decreased in the latter part of 2023, ransomware incidents overall are still increasing.

The post WTW reports possible firming cyber insurance market later in 2024 appeared first on ReinsuranceNe.ws.

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