Kathmandu. After 4 consecutive years of declining rates, cyber insurance can take another turn. That’s because the current soft market is driven by excess capacity and slower than expected growth. <\/p>\n
According to Houden-Rico’s “Cygenesis: The Start of the Cyber Market Cycle” report, the three areas expected to drive expansion have not grown enough to accommodate the growth in large insurance coverage, international growth, and greater access to small and medium-sized enterprises. <\/p>\n
According to Howden Rica, the size of insurance coverage has remained largely unchanged. While the U.S. is still responsible for the highest cyber insurance premium amount globally. <\/p>\n
Increasing competition, especially in price-sensitive segments of the market, has also put pressure on pricing. “The cyber market is maturing at a rapid pace but is still innovative,” said Luke Ford-Kelsey, Global Head of Hauden Rica Cyber. Which makes cycle analysis essential for insurers and reinsurers. \u2019<\/p>\n
According to Ford-Kelsey, the cyber insurance market is facing an even more challenging environment. “Margins are shrinking due to cyber threats and changing loss patterns,” he said. \u2019<\/p>\n
According to the report, the turn of the market rarely starts with a single event. Comparing the asset disaster and the D&O market, it was found that even a small systematic cyber incident can be enough to change the market situation. <\/p>\n
“Modelling suggests that events with a return period of about 10 to 18 years \u2014 similar to the year of a general asset disaster loss like 2008 \u2014 could trigger a significant market response,” Howden Riley said. \u2019<\/p>\n
Artificial intelligence (AI) was identified as another major factor. This could affect future market performance. <\/p>\n
“Cyber is more exposed to changing risk and loss trends than many well-known insurance classes, and is also increasingly influenced by broader economic and capital market conditions,” said David Flandreau, head of industry analysis and strategic advisors at Houden Rica. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. After 4 consecutive years of declining rates, cyber insurance can take another turn. That’s because the current soft market is driven by excess capacity and slower than expected growth. According to Houden-Rico’s “Cygenesis: The Start of the Cyber Market Cycle” report, the three areas expected to drive expansion have not grown enough to accommodate […]<\/p>\n","protected":false},"author":16,"featured_media":204849,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-298541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/298541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=298541"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/298541\/revisions"}],"predecessor-version":[{"id":298542,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/298541\/revisions\/298542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/204849"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=298541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=298541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=298541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}