Expect cyber insurance premiums to climb over the next few years, according to a report from risk management, insurance brokerage and advisory company Willis Towers Watson.
Key findings from the Willis Towers Watson "Marketplace Realities 2018: Cyber Risk" report included:
- Total annual cyber premiums are set to increase through 2018 and could reach $10 billion by 2020.
- Organizations with annual revenues below $1 billion are still seeing a very competitive marketplace with aggressive cyber insurance pricing and broad policy language.
- With the EU General Data Protection Regulation (GDPR) set to take effect on May 25, additional cyber insurance coverage options are expected to become available to address this regulation and its requirements.
The global cyber insurance market is projected to be worth $14 billion by 2022, market research firm Allied Market Research indicated. In addition, increasing cyber risk awareness among C-suite executives and the rising number of cyberattacks may further accelerate the global cyber insurance sector's growth, Allied pointed out.
Tips for Purchasing the Right Cyber Insurance Coverage
There is no one-size-fits-all cyber insurance policy. Fortunately, MSSPs that understand the different types of cyber insurance coverage can offer expert recommendations to help customers purchase the right level of protection.
International law firm Covington & Burling LLP recently provided the following recommendations to help companies buy the right cyber insurance coverage:
- When in doubt, purchase cyber insurance with the highest limits available.
- Negotiate as few cyber insurance policy sublimits as possible.
- Get the earliest-possible cyber insurance policy retroactive date.
- Review a cyber insurance application and the policy itself with a legal team.
- Track a cyber insurance policy's renewal date and update coverage as needed.
There are many cyber insurance products available to businesses.
Coalition, a California-based cyber risk solutions provider, this month introduced cyber insurance products backed by commercial insurer Swiss Re Corporate Solutions and specialty insurance underwriter Argo Group. These products include policies for small and medium-sized businesses (SMBs) and cyber and technology errors & omissions insurance with up to $10 million in coverage, according to the company.
Cyber Insurance Startups Surface
Meanwhile, At-Bay last month launched with $6 million in seed funding and partnered with globally specialized insurer and reinsurer The Hartford Steam Boiler Inspection and Insurance Company (HSB). At-Bay now provides a cyber risk insurance and protection product and digital platform for insurance brokers, the company said in a prepared statement.
