In keeping with estimates by Fitch Scores, direct written premiums (DWP) for standalone and packaged cyber insurance coverage elevated 74% to almost $5 billion in 2021 in contrast with general progress for the property casualty business of 9%, making cyber insurance coverage the quickest rising product phase within the U.S. P/C market.
Fitch said in a new brief that standalone cyber protection grew by 92% in 2021. Standalone cyber represents about two-thirds of premiums.
The credit standing company stated standalone cyber “will broaden additional as a proportion of business cyber premiums as insurers attempt to scale back publicity to ‘silent’ cyber dangers and reduce any ambiguity in protection phrases. Nevertheless, a big portion of cyber danger stays uninsured.”
The standalone cyber loss ratio improved to 65% in 2021 from 72% in 2020 as premium progress exceeded losses regardless of claims filings doubling within the final three years, Fitch stated. Renewal charges elevated greater than 34% within the fourth quarter 2021 in contrast with the earlier quarter however, aside from premium progress, the loss ratio doubtless improved because of adjustments in danger choice and coverage phrases and circumstances.
The danger of a systemic incident or a number of massive cyber catastrophes is regarding in gentle of firms’ continued growth of digital footprints, however Fitch stated: “Appreciable future claims uncertainty is offset by an anticipation for additional robust premium progress as insurers proceed to sharply elevate cyber premium charges.”
Fitch stated it’ll launched a extra detailed report on the cyber insurance coverage market in Could.
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