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Fitch: U.S. Cyber Insurance Premiums Total $1B

Fitch Ratings finds that the U.S. property/casualty insurance industry has approximately 120 insurance groups reporting writing cyber coverage in 2015, totaling approximately $1 billion in direct written premiums volume...
August 31, 2016

Fitch Ratings finds that the U.S. property/casualty (P/C) insurance industry has approximately 120 insurance groups reporting writing cyber coverage in 2015, totaling approximately $1 billion in direct written premiums volume. Fitch analyzed cyber insurance market share and performance in a new special report, [U.S. Cyber Insurance Market Share and Performance] that analyzes data from a new 2015 statutory supplement to compile company and industry statistics on cyber insurance.

American International Group wrote about 22 percent of the market, followed by Chubb at 12 percent and XL Group at 11 percent, according to the Fitch study.

“Industry estimates suggest that the global cyber insurance business could increase to $20 billion by 2020, but the lack of information on cyber insurance is a challenge for insurance companies, policyholders, regulators, and investors to evaluate and price risk,” said James Auden, Managing Director, Fitch Ratings. The P/C industry’s direct loss ratio for cyber stand-alone business in 2015 was 65.2 percent.

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