Moody’s released a report entitled, Cyber Insurance: High-Risk Product With Potential to Grow, which describes the growing cyber insurance market. More than 50 insurers offer stand-alone cyber coverage globally, and additional carriers provide cyber-related endorsements to commercial general liability or multi-peril policies.
While carriers are approaching the market cautiously, cyber insurance has seen strong growth, at 25% to 35%, with typical policy limits ranging from $5 million to $25 million per carrier, and larger coverage towers available on a syndicated basis. “Moody’s views significant expansion by insurers into the cyber risk insurance market as credit negative, similar to expansion into other high risk/return product segments such as terrorism and fidelity/crime, as underwriters test the risk/return spectrum of the product.”
