Company News

Sensei Article Featured in the Michigan Bar Journal

May 26, 2022

“Pay More Get Less – A Cybersinsurance Nightmare of Law Firms” written by Sensei’s Sharon Nelson, John Simek and Michael Maschke, was featured in the May 2022 Issue of the Michigan Bar Journal, a publication by the State Bar of Michigan.

Excerpt:

THE SKY IS FALLING

Since cyberinsurance came on the scene, law firms have fretted about the rising costs. Through most of 2021, prices increased by 30–40%. But according to global insurance company Marsh, the price of cyberinsurance in the U.S. grew by a stunning 130% in the fourth quarter of 2021.¹ Commercial insurance, by contrast, rose only 13% during that same period. Cyberinsurance carriers will say the market was undervalued to begin with, and the increases are value adjustment corrections.

Insurance companies often have reinsurance policies they buy to protect themselves from steep claims — and the price of reinsurance has increased as well, further spooking insurers, some of whom have withdrawn from offering commercial policies and shrinking the marketplace. Basically, we’ve been watching a train wreck in cyberinsurance with no end in sight.

Read the article here