The soaring costs of cyber protection are driving private insurers and the sustained rise in broader insurance prices, as the industry continues. Change the price of risk Of ransomware attacks.
Lloyd’s of London insurer Beazley said the rise in cyber prices “continues to exceed expectations” as it delivered a third-quarter update on Friday. Improve resilience.
Citi analysts said this “promising” trend would be a boost to full-year profits. Overall, Beazley’s total premiums increased by more than a quarter between January and September compared to the same period in 2020. In late-night trading in London, its share increased by 6%.
Another London-listed insurer, Hiscox, also reported a “significant” increase in cyber rates when reporting its third-quarter results on Tuesday. Group total premiums for the first nine months of the year increased 6% year-on-year.
Global commercial insurance prices continued to rise in the third quarter, according to the index of Marsh McLennan, the world’s largest insurance broker. While growth in many businesses is slowing, cyber is going against that trend. Cyber insurance prices almost doubled year-on-year in the United States and rose 73% in the United Kingdom during the period.
This year, following a wave of ransomware attacks that have increased both the frequency and severity of complaints, there has been a surge in corrective action by traditional insurers seeking to limit cyber exposure. Some people introduce limits on coverage or require clients to take basic security measures before providing a policy.
At the same time, new capital was poured into some privately owned professional cyber insurance companies. These insurers also offer technologies and services that help companies stop attacks.
Last month, European private equity group EQT invested in CFC Underwriting in a deal that puts a London-based company at a corporate value of over £ 2.5 billion.
“There was a lot of turmoil,” said Graeme Newman, head of CFC’s UK operations, explaining the market turmoil caused by the surge in ransomware. But he added: “There is more and more capacity to enter the market, and more and more interest.”
In June, CFC launched a new insurance syndicate backed by equity and third-party investor capital. Most of it is aimed at guaranteeing cyber risk.
In September, US cyber specialist Coalition raised $ 205 million from investors, including T Rowe Price, valuing the company for more than $ 3.5 billion. This is twice the valuation achieved in the previous round of funding in March.
At the time, Coalition founder and CEO Joshua Motta said, “Technical risk, or cyber risk, is one of the more prevalent risks facing organizations of all sizes and our economy. It is now. ”
1 month ago Big tech chiefHe was attending a White House conference hosted by President Joe Biden on how to strengthen US cyber defense.
Soaring cost of cyber protection lifts commercial insurers Source link Soaring cost of cyber protection lifts commercial insurers