Kathmandu. Despite falling premiums and rising cyber threats, the world’s cyber insurers are expected to remain profitable. But analysts said the outlook for the market will depend on whether insurers resist further price cuts. <\/p>\n
“Our stable outlook in this segment reflects strong medium-term profitability and solid demand for coverage with increased use of artificial intelligence (AI) and even as market pricing softens,” Cristian Sierra, senior financial analyst at AM Best, said in a July report. <\/p>\n
The demand for credit rating companies continues to grow as businesses digitise operations, comply with stricter data protection regulations, and become more aware of cyber risks, according to credit rating companies. The company expects global cyber insurance premiums to exceed $16 billion by 2025. However, competition and adequate underwriting capacity will slow growth and drive down prices. <\/p>\n
S&P Global Ratings warned that insurance markets were reaching an “inflection point” and warned that continued rate cuts could eventually lead to a drop in underwriting profits if they failed to keep pace with rising claims. Manuel Adam, an analyst at S&P Global Ratings, said in a July report, “While the decline in cyber insurance rates has begun to slow, there are early signs of improvement in pricing discipline.” This could help stabilize underwriting profits and maintain the current reinsurance-led market structure. \u2019<\/p>\n
According to Adam, worsening cyber loss trends and continued competitive pressures could challenge pricing adequacy and increase the risk of underpricing in the market. <\/p>\n
Both reports identified strong competition as the main reason for the decline in premiums. AM Best said, “The insurance market has been supporting buyers since 2023. That’s because insurance companies compete more aggressively, but underwriting remains profit-oriented, even if claims costs are higher. \u2019<\/p>\n
According to S&P, insurers will have to raise premiums to keep up with claims costs or risk underwriting losses. “Ransomware, business email agreements and fund transfer fraud are the main drivers of cyber insurance claims,” AM Best said. \u2019<\/p>\n
According to S&P, AI is making cyberattacks more sophisticated and easier to scale. <\/p>\n
Debt Watcher estimates that ransomware attacks worldwide will increase by 30 percent to 7,419 in 2025. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Despite falling premiums and rising cyber threats, the world’s cyber insurers are expected to remain profitable. But analysts said the outlook for the market will depend on whether insurers resist further price cuts. “Our stable outlook in this segment reflects strong medium-term profitability and solid demand for coverage with increased use of artificial intelligence […]<\/p>\n","protected":false},"author":16,"featured_media":65831,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-309610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309610","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=309610"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309610\/revisions"}],"predecessor-version":[{"id":309611,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309610\/revisions\/309611"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/65831"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=309610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=309610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=309610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}