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Control Alt Delete – Market Strategy Reset

Our emerging risk group discusses how tech companies can identify and quantify a range of event scenarios we have yet to experience, but can imagine happening.
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Premiums for key technology risks have more than doubled in the last 10 years – but price only tells part of the story. Terms and conditions and limits are also getting more stringent and tech companies must adapt their programs to control costs while still managing risks. Innovative companies need to find ways to adjust to control costs while still managing risks.

Marsh leaders offered advice and solutions for designing and effective risk management solution during the 2022 Silicon Valley Technology Risk Forum.

Cyber & Tech E&O Risk

Cyber is a game played against an adversary and requires different approaches than other risks. Insurers tend to focus on these points during the underwriting process.

Risk profile

  • Responses to questions correlated to ransomware.
  • Responses to questions pertaining to tech E&O.
  • Cyber supply chain – critical vendors.
  • Targets of choice vs. targets of opportunity.
  • Response plans and resiliency.
  • Privacy by design.
  • Security by design.

Carrier concerns

  • Quantifying accumulation and aggregation risk is proving challenging due to ubiquity of software and dependencies.
  • Cascading losses across multiple lines of coverage.

Product coverage concerns

  • Contingent business interruption – supply chain.
  • Cyber war and infrastructure exclusions.
  • Collection of biometric data.
  • Rising severity of fines and penalties.

Pricing – influenced by loss ratios, modeling, and required returns

  • The cost of capital has been artificially low for years, which resulted in dramatic increases in 2021, and continues into the first half of 2022.
  • In years past, pricing/loading for systemic and CAT risk was immaterial – this has evolved.


The advance of technology companies into real world products and services such as digital health, augmented reality, autonomous vehicles and other new business models brings new casualty concerns. There are three areas where tech companies should focus when it comes to casualty insurance:

  1. New businesses, new risks
    • Technological advancement breeds the evolution of new risks.
  2. Pricing, capacity, and marketing challenges
    • As the pace of change accelerates, the insurance marketplace tries to keep up.
  3. Taking control of underwriting
    • It’s more than just about the numbers.


Tech companies are facing three areas of concern regarding property coverage – rising valuations, supply chain increasing concentration and fragility in the supply chain. The factors driving rising concerns about these areas include:


  • Inflation driving up replacement costs.
  • Increased time mlement values.
  • Loss history.
  • Terms and conditions to manage exposure.
  • Erosion of policy limits.

Supply Chain Concentration

  • Production is consolidating.
  • Increased reliance on fewer suppliers.
  • Potentially higher retentions.
  • Competition for insurance capacity.

Supply Chain Fragility

  • Uncertainty around delivery times.
  • Limited coverage for non-physical damage.
  • Increased cycle refresh time.
  • Alternate means of shipping employed.
  • Inventory levels increasing to buffer anticipated delays.

D&O Liability

Tech companies are constantly innovating, changing, building an acquiring – it drives their growth and their potential D&O liabilities. Tech companies have seen a steady increase in the number of federal securities litigation in the last five years. In 2021, 31% of all federal securities ligations were related to technology companies.

Review this session to learn more about the current state of the market in our replay from 2022’s Silicon Valley Tech Risk Forum below.

Ctrl Alt Delete: Strategy Reset in a Tough Market – 2022 Tech Risk Forum Replay

Tech risk specialists discuss how innovative companies are adjusting to this new insurance market, with surging premiums and more stringent terms and conditions.

Our people

Greg Eskins

Greg Eskins

Managing Director, Cyber Risk Practice

  • United States

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Morgan Kyte

Managing Director, QSG Casualty Tech & Life Science Placement Leader, Marsh

  • United States

Allison Merkle

Allison Merkle

Senior Client Advisor

  • United States

Deepak Adappa

Deepak Adappa

Managing Director, FINPRO

  • United States