Global Cyber Insurance Market QI 2022
Cyber insurance premiums increased over 80% in Q1 2022
New attack strategies from hackers, escalating ransomware attacks and growing geopolitical tensions are just a few of the factors that have driven cyber insurance premiums upward through Q1 2022.
These premium increases have happened regardless of the insured’s industry or the size of their organization.
Who Is Most At Risk Of Cyberattack
Hackers have begun to favour victims that can act as a gateway to additional targets. This includes entities like
Insurers enforce preventive measures
Organizations that have failed to enact these kinds of precautions have seen some of the highest rate increases – as high as 300%.
Tougher underwriting
Cyber insurance underwriting will continue to intensify, and customers can expect more restrictive coverage terms, mandatory sublimits and language that specifically excludes certain widespread or global cyber incidents as insurers become less willing to fully cover increasing ransomware costs. These factors may influence insureds to take a more active role in enacting policies and practices that more actively protect them from cyber threats.
As cyber premiums have climbed, policy limits have shrunk. The report states carriers have attempted to limit exposure by limiting capacity, which has led to policy limits only about half as large as those offered in the 2021 renewal cycle.