Summary
The Council of Insurance Agents & Brokers (The Council) is pleased to release its seventh biannual Cyber Insurance Market Watch Survey. The survey, which was conducted in December 2018 and consisted of 18 questions designed to provide insights into the burgeoning cyber insurance market, creates a snapshot of the market and allows us to monitor changes and trends.
Survey results showed that take-up rate remained relatively low at about 33 percent, premium pricing stayed flat to down and capacity was flush in the market (with the exception of specialized industries such as healthcare or drones). Respondents also continued to express a desire for further standardization in cyber policy language, though there were signs that carriers have begun to address this issue. Recent cyber events, such as the Marriott breach, were shown to have affected Council members’ and their clients’ approach to cyber insurance and cybersecurity. Many respondents also made clear they thought the government could do more when it came to protecting companies and consumers alike from cyber threats.
Key Findings
Market Trends
- 32% of respondents’ clients purchased at least some form of cyber coverage33% of respondents’ clients purchased at least some form of cyber coverage
- 32% of those clients who purchased cyber insurance, 32 percent were first-time buyers
- 34% of respondents’ clients increased their coverage within the past six months
- 67% of those with cyber insurance have standalone policies
Pricing Trends
- $2.8 M was the typical cyber insurance policy limit
- 87% of respondents said premium prices either stayed the same or decreased over the
last six months
Underwriting
- 65% of respondents did not see any tightening of carrier underwriting practices in the last six months
- 23% of respondents believed there was not adequate clarity as to what is included and excluded in a cyber policy
- 79% of respondents noted that capacity in the market is either plentiful or increasing
Cybersecurity/Cyber Risk
- 85% of respondents’ firms have a strategic approach to marketing and educating clients about cyber risks
- 37% of respondents’ clients have an information security program in place focused on prevention, detection, containment and response
To download the full report, please click here.