07/15/2019 | Press release | Distributed by Public on 07/15/2019 12:53
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Press Release - JULY 15, 2019
AM BestTV: Cyber Coverage Growth Attracts Competitors, Say AM Best Analysts
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
FOR IMMEDIATE RELEASE
OLDWICK - JULY 15, 2019
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 .
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