Cyber Insurance Purchasing Grows Again in 2019
The number of companies purchasing cyber insurance continued to grow in 2019, driven by increasing recognition of cyber threats as a critical business risk and appreciation for cyber insurance as a valuable tool in mitigating the economic impact.
42% of Marsh clients now purchase cyber insurance, more than double the number in 2014. Cyber insurance is poised for continued growth given greater buyer confidence, continued escalation of ransomware, and coverage changes due to “silent cyber” that are driving purchase of stand-alone cyber policies.
Manufacturers and data intensive industries – education, health care, hospitality and gaming, and communications, media, and telecomm – are leading the growth.
- Hospitality, manufacturing, and education purchasing each grew nearly 30% or more between 2016 and 2019.
- 41% of manufacturers purchased cyber insurance in 2019, up from 8% in 2014.
- 74% of education clients now purchase cyber insurance.
Large companies are again increasing the limits they purchase: among those with revenues of $1 billion or more, average limits rose 4.6% to $65.3 million. The largest increase in limits were among financial institutions, health care, hospitality, and professional services.
Cyber insurance pricing began to rise in 2019, after a sustained period of flat to declining prices. Average pricing in the US cyber market rose 3% in the fourth quarter. That increase is modest compared to other lines: average global commercial insurance pricing rose 11% in the fourth quarter, and composite pricing rose in all regions, including the US (10%), UK (14%), and Pacific (21%).
Read the full report on rising cyber insurance purchasing and factors driving that growth.