Cyber Insurance Purchasing Increases as Risk Awareness Grows – 2018 Report
In a new report, 2018 Cyber Insurance Trends: Purchasing, Limits and Pricing, Marsh looks at changes in cyber insurance purchasing, limits and pricing among its US clients in 2018, as well as longer-term trends over the past three to five years by industry.
Over the past five years, the number of all Marsh US clients buying cyber insurance has doubled, from 19% in 2014 to 38% in 2018. That growth is evidenced across all key industries, which saw an average rate of 15% growth since 2016. In 2018, cyber insurance purchases grew the most among hospitality and gaming (67%) and education (34%) organizations.
The report describes some of the reasons for the growth of stand-alone cyber policies:
- Several recent high-profile cyber-attacks, driving recognition of cyber risk among industries not traditionally viewed as at risk;
- Insurers increasing exclusion of coverage for cyber events in property or other policies; and
- Development of cyber insurance products that address a variety of operational and privacy exposures, making coverage more attractive to a broader range of industries.
Cyber policy limits also grew in 2018, with average limits purchased by all companies rising 11% to $20.9 million in 2018. Among companies with more than $1 billion in revenues, average limits purchased increased by more than 25% in 2018, to $62.4 million.
While growing awareness of cyber risk and expanded coverage offerings have driven demand, pricing remains competitive thanks to a commensurate increase in supply.
Read Marsh’s full report on 2018 Cyber Insurance Trends: Purchasing, Limits and Pricing.