Cyber insurance direct written premium volume for the property & casualty (P&C) industry grew by 35% in 2016 to $1.35 billion, according to "Cyber Insurance Market Share and Performance," a new report from Fitch Ratings.
|Cyber exposure
Fitch notes that the $1.35 billion figure likely underestimates the industry's cyber premium exposure as there are inherent challenges to breaking out cyber-related premium from other coverages in multi-line coverage products.
"Take-up rates for cyber insurance are increasing with frequent reports of computer hacking incidents, including: network intrusions and data theft, as well as high-profile ransomware attacks that are leading corporations to search for broader insurance protection against cyber threats," said Jim Auden, managing director, Fitch Ratings.
|Largest cyber writers
The largest cyber insurance writers are American International Group, Inc., XL Group Ltd, and Chubb Limited. These companies had a combined market share of approximately 40% at year-end 2016. The top 15 writers of cyber held approximately 83% of the market in 2016. However, over 130 distinct insurance organizations reported writing cyber premiums for the year.
The industry statutory direct loss ratio for stand-alone cyber insurance improved in 2016 to 45% from 50% a year earlier. However, the ultimate profitability of the P&C industry's cyber insurance efforts will take some time to assess as the market matures and future cyber-related loss events emerge.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.