A Market Update
The cyber market continues to capture the interest of buyers and is moving extremely quickly; in 2023 we saw an increasing level of competition, been driven by an influx of capacity, following an 18 month spell of premium and self-insured retention corrections. In Q4 of 2023, we have observed an average premium reduction between 5-10% across our London Cyber portfolio, with more significant savings for those with strong cyber security controls and favourable claims experience. Continued competitive conditions in the cyber market are expected to continue. However, there are several factors influencing the future stability of the market, to which we are monitoring closely:
Insurers are warning of adverse development on open liability claims and claims costs inflation (for example legal costs)
Reinsurance providers scrutiny of systemic risk exposure is increasing; and
Global privacy landscape continues to evolve, for example the recent SEC rule imposed regarding cyber security disclosure requirements and the upcoming EU Cyber Resilience Act.
While conditions are currently favourable for buyers, particularly first time buyers, it’s worthwhile mentioning we’ve seen the number of paid claims and notifications increasing exponentially in the last six months, with the number of notifications increasing by circa 35% year on year in our Portfolio. This trend leads us to believe that the current cyber market favourable conditions may not last for long.
Our recommendation is that clients continue to invest in cyber security maturity and incident response readiness; enabling them to benefit, in the short term, from the favourable market conditions, whist also being prepared for future volatility and ever evolving cyber threat.
What Happens When Ransomware Hits
Unlock the Mysteries of Ransomware: Join Our Exclusive Webinar!
Are you prepared for a ransomware attack?
Discover the critical insights and strategies you need to protect your professional services firm. Lockton and PureCyber team up to bring you a compelling webinar exploring the immediate and long-term effects of a ransomware incident. Learn firsthand from cybersecurity experts about how to mitigate risks, respond effectively, and ensure your firm's resilience against these digital threats. Don't miss out on this opportunity to safeguard your business.
Click here (opens a new window) to register now and arm yourself with the knowledge to combat ransomware. Secure your spot today!
Cyber Trends Spotlight – December 2023 Review
Kroll monthly reports are based on experience in cyber incident response, drawing on data from 3000+ engagements.
Download the full report here (opens a new window).
Subscribe to our Cyber Cycle
If you would like to receive our comprehensive cyber and technology risk alerts – please sign up here (opens a new window).
