Cyberinsurance Premiums are Going Down: Here’s Why and What to Expect

By Kevin Townsend for SecurityWeek
Tuesday, July 2, 2024

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Cyberinsurance premiums increased rapidly in 2021 and 2022. The insurers got their sums wrong through an insufficient understanding of the cybercrime market. They were forced to redefine a cyberwar exclusion clause, increase denials and exclusions, and hike premiums. Now premiums are declining again.

“Fewer companies are willing to invest a considerable amount of money in cyberinsurance after a bad experience when insurance coverage was denied for various reasons and contractual clauses subtly incorporated into the insurance agreement,” comments Ilia Kolochenko, partner & cybersecurity practice lead at Platt Law LLP, and CEO at ImmuniWeb.

Now the cyberinsurance industry is becoming more mature with better actuarial understanding of the risks, he adds. The implication is that improved security from the insureds, better understanding of security from the insurers, and a more discerning marketplace is forcing the insurers to reduce premiums to maintain market share. Read Full Article