You are here:HomeIssuesCybersecurity2017Insureds Increasing Cyber Limits on Renewal

Insureds Increasing Cyber Limits on Renewal

The Council of Insurance Agents & Brokers (CIAB) “Cyber Insurance Market Watch Survey” reveals that the average cyber policy limit in the last six months has doubled in the United States as clients seek higher amounts of coverage upon renewal...
May 23, 2017

The Council of Insurance Agents & Brokers (CIAB) “Cyber Insurance Market Watch Survey” reveals that the average cyber policy limit in the last six months has doubled in the United States as clients seek higher amounts of coverage upon renewal. The average cyber policy limit increased to around $6 million in the last six months, double the $3 million reported in October 2016, according to the survey.

Of policyholders who purchased cyber coverage in the last six months, 44 percent increased their coverage levels while 56 maintained their existing level of coverage. One respondent explained, “Most clients that are renewing coverage are actively exploring increased limits, or at least assessing if their current limits are adequate.” The last six months also saw trend changes in premium pricing, as 85 percent of respondents noted that premium pricing generally stayed the same or decreased. Just a year ago, nearly 40 percent of respondents reported an increase in premium pricing, proving that policies are becoming more affordable.

Cyber insurance is in demand, generating at least $3.5 billion per year in annual premiums. Allianz SE says that by 2025, the market will generate up to $20 billion. Marsh & McLennan Cyber Practice Leader Tom Reagan says hacking, like the WannaCry ransomware attack, has become “a global pandemic.”

Filed under: