CYBER MARKET SEEN AS LESS COMPETITIVE: STUDY

Rate increases suggest the cyber insurance market is becoming less competitive, according to a survey from PartnerRe and Advisen. Most brokers said cyber insurance rates increased 5-10%, while underwriters said prices were flat to +30%. Higher pricing reflected ransomware losses and a “slow-down in competitive expansion”, the report said. Almost two thirds (63%) of respondents felt that the market has become more competitive, but this was significantly lower than the 86% and 90% respectively in 2019 and 2018. In another sign of reducing competition, ‘cost’ was cited as the third biggest impediment to purchasing cover. Despite growing cost, some 60% of the 260 cyber insurance brokers and 190 cyber underwriters polled said insureds continue to request higher limits, with cyber-related business interruption being the most sought after cyber coverage.