- Global cyber insurance prices moderated during the first quarter of 2023, as average price increases rose by just 11%, compared with 28% increases during the fourth quarter, according to the Global Insurance Market Index from Marsh.
- The moderation was led by changes in the two biggest international markets, the U.S. and U.K. In the U.S., prices rose by 11% in Q1, down from the 28% increase in the prior quarter. The U.K. experienced a similar price moderation, with increases of just 10% compared to 34% in Q4.
- Among the top factors in the moderate rate increases were increased competition, improved cybersecurity controls and fewer reported ransomware attacks in 2022.
First-quarter figures from Marsh show a continued stabilization in the global cyber insurance market, following several years of turbulence.
The market had been experiencing sharp price increases, and competitors have dropped out of the market amid ransomware sprees and rising threats to critical infrastructure in connection with the Ukraine war.
Earlier this month, Fitch Ratings reported a slowdown in cyber insurance premium increases. Marsh had previously released data showing a slowdown in rate increases.
Starting March 31, Lloyds mandated new war exclusion language that was designed to manage systemic risk, according to the Marsh report. Lloyds is still engaged in talks regarding those exclusions.
Ransomware claims have seen an uptick during the first quarter, according to Marsh.
There have also been a large number of privacy claims filed in connection to privacy legislation, such as the Biometric Information Privacy Act and the Video Privacy Protection Act, according to Marsh.