Insurers Tap Cyber “Opportunity” as Rates Continue to Rise
Cyber-insurance companies appear to be benefitting from a continued surge in prices, even as the frequency of claims falls due to corrective steps they’re taking with clients, it has emerged.
Global insurer Beazley, listed with Lloyd’s of London, said on Friday that premium rates on renewal businesses increased 23% year-on-year in the third quarter, driving gross premium revenue to over $3.7bn.
A large chunk of these price rises come from the firm’s Cyber & Executive Risk Division, which saw rates increase 48% year-to-date (YTD) compared to the same period last year. That means the division accounted for $991m in Q3, almost a third of total premium income for the period.
“I remain excited about the opportunity in the cyber market and with our disciplined and prudent risk selection, our market leading product offering and the ongoing investment in our cyber infrastructure, I believe we are in a great position to capitalize on this,” said Beazley CEO, Adrian Cox.
Prices for cyber-insurance continue to rise despite a “downward trajectory” of claims following remediation work done with customers over the past year, it said.
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