NEWS RELEASE – FOR IMMEDIATE RELEASE
Contact: Brianne Spellane
Director of Communications & Content Strategy
Cyber Insurance Take-Up Rate Remains Flat in Second Half of 2017,
According to CIAB Cyber Market Watch Survey
WASHINGTON, D.C. – December 21, 2017 – The Council of Insurance Agents & Brokers today released its fifth biannual Cyber Insurance Market Watch Survey. Results were consistent with those in May 2017, as take-up rates remained relatively low at around 31 percent.
“Cyber coverage is becoming an increasingly critical line of business for our members’ clients,” explained Ken A. Crerar, President/CEO of The Council. “However, as cybercrime continues to increase around the globe, with the average cost of a data breach approaching $4 million, it’s essential for broker members to continue emphasizing the importance of adding cyber policies to clients’ risk-portfolios.”
The survey, which consisted of 16 questions designed to provide insights into the burgeoning cyber insurance market, creates a snapshot of the market and highlights changes and trends. While many clients were curious about cyber insurance, their interest did not necessarily translate to the purchase of a policy, according to survey results. Interestingly, widely publicized international events, including the Equifax breach and the WannaCry and Petya ransomware attacks, did not greatly influence adoption.
Respondents agreed that capacity remained plentiful in the market and premium pricing generally stayed the same over the last six months. Of those brokers collaborating with outside cybersecurity firms, the majority of respondents (62 percent) agreed that they are used for both quantifying cyber risk and post-event response while 32 percent said these partnerships are mainly used for post-event response and consulting. Additionally, the survey found brokers doing more when it comes cyber education. More than 85 percent of brokers surveyed had some proactive, strategic approach to marketing and educating their clients and prospects about cyber risks, a 15 percent increase from May 2017, according to results.