Cyber buyers must analyze everything when viewing the insurance market and debating their next move. Over the past few years, the insurance market has experienced climbing rates, severe losses, reduced insurer appetite, and a high volume of claims.
Attention has also been placed on the accumulation of risks and managing these exposures. In addition to the digital interconnectivity of the globe and heightened geopolitical attention, the threat of cyber activity has shifted how buyers perceive cyber risk. Insureds now realize the likelihood of being the victim of a cyber attack.
In addition to the shifting perception of the insured, insurers are also changing how they address cyber risk. It is primarily evident in the price increases that have taken place across the market. Using platforms like Portal Pro, insurers are keeping up with the intricate details of the insured and their claims and adjusting policies based on the data portal pro reveals. There is an expectation that market conditions will continue to be challenging as systemic risk and accumulation risk continue to plague the insurer and insured alike.
Despite acknowledging the future risk concerns, it seems there is a slight shift in how insurers approach risk. The steep rate increases that have dominated the market for the past few quarters are starting to even out.
Likewise, premium growth has surpassed the losses incurred and the increased control over attritional losses. The rate hikes have driven organizations to be more proactive in strengthening their cyber risk protocols, potentially reducing claims and helping balance out the rates against losses sustained.
Underwriters are doing better at pricing cyber coverage at moderated rates thanks to the information entered into an insurance agent portal. There is an influence of new entrants to the cyber risk insurance market, which is also helping rate moderation. There is more market competition, thanks to the increase in first-time buyers in the U.S. and Canada. Cyber coverage continues to present itself as a necessity, not a luxury.
The nature of cyber threats alone is challenging to address, and the frequency and severity of the losses sustained in an incident make it a complex landscape to navigate. Many of the industries reporting attacks and filing claims include:
However, the threats exist for small business owners just as much as it does for Fortune 500 companies. There is an increased need for more risk transfer programs and better cyber hygiene. Rate increases may occur once an insured files a claim, Portal Pro can provide more insight into these changes. As an agent, your challenge is to navigate these situations and preserve the client relationship in the process.
The threat of cyber activity isn’t going away, and neither are the risks it poses to the insurer and insured. However, there may be a glimmer of hope that the rates for coverage will moderate over the next few quarters.
Say goodbye to outdated systems and begin looking at a solution that will provide what you need to increase productivity, decrease costs in the long run, deliver frictionless transactions, and remain competitive in today’s environment. For more information about VRC’s Verity software and to book a demo, click here or contact us at (541) 209-0700.
