In 2021, the US Cyber Liability market saw an increment of 75% in direct premiums. During the first half of 2022, the cyber insurance market “continued to correct,” with rates rising by at least 60% for ideal risks and by at least 100% for less ideal or challenging risks, according to USI’s 2022 Commercial P&C Market Outlook Mid-Year Addendum.
This growing trend of cyber insurance has made it the fastest-growing segment in the P&C insurance sector.
The surprising part is, despite the consistent spike, there has been a 16% increase in cyber insurance claims and just a modest reduction in the loss ratio, according to an AM best report. Cyber supplement data states that the industry’s yearly reported claim filings have doubled over the last three years. Direct incurred losses and defense and cost containment (DCC) costs for standalone cyber coverage have increased by over 300 percent since 2018. Even so, earned premium growth outpaced changes in losses suffered in 2021, and the standalone cyber loss ratio decreased from 72% to 65%