The insurance industry has reached a crossroads. On one hand, with over 30% compound annual growth for cyber premiums over the last five years, cyber insurance has become the fastest-growing insurance market. On the other hand, the vast majority of insurance professionals lack sufficient cyber training and fluency in the “technical language” it demands to effectively work with this complex insurance product.
Underwriting is the foundation of the insurance industry – and cyber insurance underwriting will be no different in the new, ever-changing cyber market. Insurance underwriters evaluate and analyze the risks involved in insuring people and assets. They are also responsible for setting a price and establishing the insurance premium that will be charged in exchange for taking the risk.
The cyber insurance market is going through uncertain times that require serious retrospection, which may result in price rises and hardening of insurance conditions. In this article, we will examine the shifts that took place in this market and how insurance companies and their clients are coping with this change.
Cyber Insurance is a relatively young product. It was born in the late 90’s but matured only few years ago. In the last few years this product has managed to become the fastest growing product in the insurance industry to date (37% growth YOY).
Today, most insurance companies are offering specialized cyber insurance products, and many of them are beginning to include cyber insurance coverages across other line of insurance, such as marine and general liability insurance.
Stand-alone cyber insurance policies have become common among businesses. These policies cover a variety of liabilities related to cyber risks, from data theft, data privacy, ransomware, service disruptions, and much more.