Cyber-insurance: AMRAE points to price increases
AMRAE has just published its annual study on the insurance market with a focus on the different types of contracts, including cyber insurance.
The Association for the Management of Risks and Business Insurance (AMRAE) has just published its “State of the market and outlook for 2022 – Business insurance”. This annual study by the French professional association of risk managers provides an update on insurance trends with differentiation by type of contract. Among these types of contracts, there are of course insurance contracts against cyber risks.
In general, the insurance market, on almost all types of contracts, tends to decrease the capacity of insurers, a decrease in the scope of risk coverage but an increase in subscription prices and deductibles. . If, in a few very mature niches (such as automobile insurance), this general trend is lessened, with stability in certain changes in the four analysis criteria, this is clearly not the case for cyber insurance. On these insurances, the drop in insurers’ capacities and the extent of risk cover associated with an increase in subscription prices and deductibles are particularly marked, sometimes up to a doubling of premiums or deductibles. The “ransomware” warranty is shrinking.
In addition, the cyber insurance market is now experiencing a certain maturity. The players are concentrating with, as a consequence, a scarcity of the offer and a level of requirement which increases considerably on the part of the insurers. An actor with a particularly risky profile (especially in disaster-stricken sectors such as logistics) will have great difficulty in taking out cyber insurance. The subscription (or renewal) procedure, in the same way, becomes cumbersome and must therefore be very early. AMRAE warns: “the point of equilibrium which would allow a stabilized cyber insurance market to be considered seems very uncertain in the long term. “