Everybody’s Buying Cyber… Why Aren’t You?
A recent market survey shows companies are getting the message that purchasing cyberinsurance is a corporate imperative today. According to a recent AM Best Market Segment Report, direct premiums written for U.S. cyberinsurance policies from 2015 to 2018 have doubled to $2 billion. Three million cyberinsurance policies were in force in 2018, an increase from 2.6 million in 2017. Admittedly, premium growth has slowed to 12.6 percent in 2018, although that may be due in part to the number of companies using captives for their cyberinsurance program.
Of note, Chubb INA Group is now the top cyberinsurer by direct premium written, with more than $325 million. Hartford Insurance Group is now the top cyberinsurers by number of policies in force, with approximately 510,000. These carriers are two of the 528 U.S. insurers writing cyberinsurance policies, up from 309 carriers in 2015. Given the increasing participation of U.S. insurers in this space, the report concludes that capacity should continue to grow. What may slow cyberinsurance growth, or even possibly bring it to a crippling halt, is a seismic event with aggregation across multiple industries. Until that happens, the profitability associated with cyberinsurance will continue to make this product line the goose that can’t stop laying golden eggs.