Cyber Insurance Rates Are Dropping: What It Means for You

 Description

• Relief is finally coming to the cyber insurance market.
• Many carriers and insurers are opening up their books, issuing more policies, and even reducing premiums.
• $50 million in new excess capacity is available for new insurers entering the cyber market.
• Some clients are seeing flat to declining rates after the overcorrections in 2021.
• Business owners may find cyber insurance rates easing and underwriting standards becoming less strict.
• If you had trouble getting a policy in the past, now is a good time to check again.
• Some excess and surplus lines policies may now qualify for admitted carriers.
• Deductibles may be lower, making coverage more affordable.
• Reassess your options with your broker to explore new coverages available for 2023.
• Previously restricted business categories may now have better access to cyber insurance due to increased capacity.

 

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Finally, there's some relief in the cyber insurance market. Many carriers and insurers are starting to open up their books, letting more policies go out the door and even reducing premium amounts. According to the article, $50 million in new excess capacity is available for new insurers entering the cyber market. Some clients are experiencing flat to declining rates where there were overcorrections in 2021.

So if you're a business owner and you need to get cyber insurance or already have a policy, you'll find that the rates may be easing a little bit. Some underwriting standards are also backing off.

Have you had problems in the past getting a policy placed? Maybe it was quoted as an excess and surplus lines carrier, and now you might be able to get an admitted carrier. Or perhaps the deductibles were too high, and you decided to self-insure. Take another look with your broker to see what coverages are now available in 2023.

Going into 2023, check if there’s a more appealing offering from your existing carrier or maybe other carriers that your agent or broker can find for you. Perhaps your market or business category was restricted before, but now it's more open because carriers have this extra excess capacity.