The cyber insurance market has been in a state of flux for the past three years, with hard market conditions causing rates to skyrocket for cyber insurance buyers. However, there is finally some good news on the horizon. According to recent reports, the market is showing signs of stabilization, with smaller rate increases being seen by buyers.
While rates may be stabilizing, the market is not expected to return to the soft market conditions that were prevalent in years past. Instead, we can expect to see a continuation of the more restrictive policy wording that has become the norm, including exclusions for widespread/systemic events and war/terrorism.
One thing that is clear is that the cyber market is maturing, with new insurers entering the market and creating more competition. This is good news for buyers, as it suggests that pricing may become more competitive in the future. However, the market is also grappling with growing concerns about systemic cyber risk and how to quantify a potentially catastrophic cyber event.
So what can buyers expect in terms of rate increases? The range is wide, from 10-40%. It’s clear that the cyber insurance market is still evolving, and it’s more important than ever to work with your insurance advisor to ensure you have the right coverage in place to protect against cyber threats.
At Hauser, we’re committed to staying up to date on the latest trends and developments in the cyber insurance market. Our team of experts can help you navigate this complex landscape and find the coverage that’s right for your business.
So while there may be some positive signs of stabilization in the cyber insurance market, it’s important to remain vigilant and proactive when it comes to protecting your business against cyber threats. By working with a trusted insurance advisor, you can ensure that you have the right coverage in place to protect your business against these ever-evolving risks.