The Guy Carpenter report, Through the Looking Glass: Interrogating The Key Numbers Behind Today’s Cyber Market, documents the many ways the cyber market has changed in recent years.
Since the publication of Guy Carpenter’s industry loss study, Beyond the Clouds, in 2019, the market saw significant growth and experienced such challenges as ransomware attacks. The market subsequently hardened, challenging the class of business and leading to heightened collection and leverage of data to enhance underwriting and claims processes.
Main takeaways include:
- Beyond hardening of rates, policy terms began to tighten coverage, looking explicitly at business interruption and contingent business interruption as key coverages impacted by subpar security hygiene, exercising additional scrutiny to deploy full limits. The most significant change to cyber coverages came from exclusionary language, particularly around critical infrastructure and war.
- Technology and data science have become major factors in developing cyber strategies, as carriers look to collect and harness data to improve bottom-line returns.
- Insurtechs have been instrumental in employing technology, identifying emerging trends by evaluating claims information from across the market, while providing direct customer engagement to better inform policyholder decision-making.
For more on the Dynamics That Define the Market Today, please see the section beginning on page 5 of Through the Looking Glass: Interrogating The Key Numbers Behind Today’s Cyber Market.
