fbpx

AM BestTV: Cyber Coverage Growth Attracts Competitors, Say AM Best Analysts

23 Views

OLDWICK, N.J.–(BUSINESS WIRE)–In this AMBestTV episode, Fred Eslami, associate director, and Sam Hanig, senior industry analyst, both of AM Best, review insurers’ filing data that shows the top writers of U.S. cyber liability coverage. Click on http://www.ambest.com/v.asp?v=cyber719 to view the entire program.

Direct premiums written in the U.S. cyber insurance market have more than doubled over the last four years, and the market now tops out at roughly $2 billion.

“The cyber market today is very promising,” said Eslami. “Since, 2015, the premiums have doubled to $2 billion from $900 million, which is quite encouraging,” said Eslami. “The majority of large companies believe that they have sufficient cyber security insurance, so the increases we have seen have come from the smaller companies given the rise in severity and frequency of cyber attacks and the companies having become more knowledgeable about the need to have cyber insurance.”

Hanig addressed entrance strategies by new cyber insurance market participants given that the segment is still in its early stages.

“Since cyber is still a pretty new line of business, AM Best is pleased to see companies taking a measured entrance into the market. New entrants are measuring how much they want to write. Their premium volumes are typically a small proportion of their total premium and surplus writings. Additionally, new writers of cyber insurance often utilize reinsurance protection. New entrants are still wrapping their hands around how to price, model and underwrite cyber insurance,” he said.

To access a copy of this market segment report, titled, “Cyber Insurers Are Profitable Today, but Wary of Tomorrow’s Risks,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=286713.

Recent AMBestTV episodes:

  • Investor Interest in Insurtech Prods Traditional Insurers: Andrew Johnston, global head of insurtech, Willis Re, said many insurers are stepping up their own technology and innovation efforts to better respond to technology-enabled competitors: http://www.ambest.com/v.asp?v=johnston519.
  • Advancing Flood Modeling and NFIP Changes Will Better Target Risk: Patty Templeton-Jones, president, Wright National Flood Insurance Company, said flood modeling is still in relatively early stages, with the National Flood Insurance Program (NFIP) expected to start using its revised risk rating system by October 2020: http://www.ambest.com/v.asp?v=templetonjones519.
  • In the IoT World, Data Matters As Much as Devices: Marty Frappolli, senior director of Knowledge Resources, The Institutes, said insureds will benefit from connected devices and insurers will also benefit from what they learn by deploying those devices: http://www.ambest.com/v.asp?v=frappolli419.
  • Artificial Intelligence and Complexity Theory Joining to Push Back Risk Frontiers: Attendees at the Global Insurance Summit, said insurers and reinsurers are working with scientists to better understand chaos and complexity, which should help them better understand sophisticated risks: http://www.ambest.com/v.asp?v=gis519.

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View AM BestTV episodes at http://www.ambest.tv.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

 

Contacts

Lee McDonald

Group Vice President, Publication and News Services

+1 908 439 2200, ext. 5561

lee.mcdonald@ambest.com

leverton

I have been involved with publishing and marketing for the past 37 years. My passion is helping people share their voice. I am able to do this through two important venues: One, with Area-Info.net where people can share everything from opinions to events to news. It is your choice! What do you want to share? Two, through a new program called America's Real Deal I am involved with to help business owners get their voice heard.For people who love to save money and earn while saving, there is a new program called the r network. You are provided with a card that entitles the user to automatic savings on more than 300,000 products. Learn more about the revv card today. This is by invitation only to be some of the first people to get this card.I schedule speaking engagements with community groups and business groups to share my passion about the importance of "sharing your voice".Contact me directly at lee@leeeverton.com for scheduling information.

You May Also Like