Ride the Lightning

Cybersecurity and Future of Law Practice Blog
by Sharon D. Nelson Esq., President of Sensei Enterprises, Inc.

Broker Marsh Reports Rate Increases for Cyber Insurance Have Declined Nearly 80% in Six Months

October 18, 2022

On October 14, Insurance Journal published a post indicating (to my amazement) that rate increases for cyber insurance have decelerated nearly 80% on average in just six months. Average rate increases were 54% as of July 2022 compared with 133% at December 2021. The information comes from insurance broker Marsh.

“The outline of a more stable market on the horizon is becoming clearer as time passes,” Marsh said. “We are optimistic the market will continue to build on this momentum and continue its path toward stabilization.”

Why the good news?

New capacity and insurers continue to enter the cyber insurance marketplace; organizations are improving cybersecurity; carriers are enhancing risk engineering and management capabilities; and there is more communication among the insurance industry, corporations, government, and law enforcement.

Marsh said insurers are revising strategies, adjusting risk appetites and product composition. The broker said the trend continues of insurers cutting back or not offering ransomware coverage if clients have poor controls in place. Additionally, as I’ve previously reported, Lloyds has proposed new exclusions for war and state-sponsored attacks.

 However, coverage clarity is still in need of improvement, Marsh said. This affects buyers’ “confidence in and comfort working with the cyber insurance market” even as products are proven to be an effective risk transfer and risk management mechanism. Demand is high. Marsh said first-time buyers have nearly doubled in five years.

That’s as optimistic a report as I have heard since 2020. May this trend continue!

Sharon D. Nelson, Esq., President, Sensei Enterprises, Inc.
3975 University Drive, Suite 225, Fairfax, VA 22030
Email:   Phone: 703-359-0700
Digital Forensics/Cybersecurity/Information Technology
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