July 30, 2018
Summary
The Council of Insurance Agents & Brokers (The Council) is pleased to release its sixth biannual Cyber Insurance Market Watch Survey. The survey, which consisted of 16 questions designed to provide insights into the burgeoning cyber insurance market, creates a snapshot of the market allowing us to monitor changes and trends.
Survey results showed no major changes over the past six months in any of the metrics The Council tracks in comparison to the Fall 2017 survey. Take-up rate remained low at around 32 percent, most respondents again agreed that market capacity was plentiful or increasing, and premium prices largely stayed the same. Additionally, although many respondents said the coverage of recent cyberattacks and new regulations in the EU and the U.S. heightened awareness of cyber risks for many of their clients, that acknowledgment did not generally translate into a significant change in clients’ purchasing cyber coverage.
Key Findings
Market Trends
- 32% of respondents’ clients purchased at least some form of cyber coverage
- 32% of those clients that purchased cyber insurance were first-time buyers
- 45% of respondents’ clients increased their coverage in the past six months
- 71% of those with cyber insurance have standalone policies
Pricing Trends
- $3.2 million was the typical cyber insurance policy limit
- 89% of respondents said premium prices either stayed the same or decreased over the last
six months
Underwriting
- 58% of respondents did not see any tightening of carrier underwriting practices in the last
six months - 28% of respondents believed there was not adequate clarity as to what is included and excluded in a cyber policy
- 78% of respondents noted that capacity in the market is either plentiful or increasing
Cybersecurity/Cyber Risk
- 86% of respondents’ firms have a strategic approach to marketing and educating clients
about cyber risks - 34% 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.