Conning: U.S. Cyber Insurance Market is Growing, but can the Industry Solutions Keep Up with the Threat?
- Overall cyber premium is up, but competition is keeping rates down
- Underwriting cyber insurance remains a risky proposition, with challenges on multiple fronts
HARTFORD, Conn., Sept. 4, 2019 /PRNewswire/ -- Insurers continue to refine and evolve the underwriting and products for cyber threats, along with incubating an ecosystem of services. The cyber threat, however, is evolving at a rapid pace, enhanced by the explosive growth in technology advancements, according to a new study by Conning.
"While cyber premium has been growing, there are challenges to widespread uptake of the coverage," said Alan Dobbins, a Director, Insurance Research at Conning. "Digital technology has become fully enmeshed in the physical world, and cyber risks present potential threats to physical assets as well as casualty exposures. Insurance buyers need more education on the risk. In our survey with agents and brokers, many feel that insurance buyers still do not think they need the coverage or lack a full understanding of the risk, which is challenging further growth in cyber premium."
The Conning study, "U.S. Cyber Insurance Market Overview: The Evolving Response to a Pervasive Threat" analyzes the cyber landscape, reviews current cyber coverages, provides an outlook for the future of cyber, and shares insights from a comprehensive survey with brokers and agents who place cyber business. In development of this study, Conning gathered perspectives from industry experts across all aspects of cyber insurance, including underwriters, claims professionals, modelers, regulators, legal counsel, and insurtech firms.
"The cyber line faces some challenges moving forward, such as the impact of silent cyber, the ability of model development to keep pace, and the development of services to mitigate losses," said Steve Webersen, Head of Insurance Research at Conning. "The underlying concern is that so much is unknown about the cyber threat, and those carriers that are heavily invested in this line may be subject to earnings volatility. However, for carriers that do figure it out, they will stay relevant in an increasingly digital age."
This report on cyber is Conning's first strategic study for this sector after years of following the line's development.
"U.S. Cyber Insurance Market Overview: The Evolving Response to a Pervasive Threat" is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
ABOUT CONNING
Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
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