Cyber carriers to see ‘rebound’ in performance: Fitch

Cyber carriers are likely to see a “rebound” in their underwriting performance, Fitch Ratings has predicted, amid rising rates and tighter underwriting standards.

The ratings agency said carriers remain committed to the cyber insurance market, which is one of the fastest-growing lines of business worldwide.

“Cyber risk is a growing critical concern for organizations and public entities globally, as utilization and dependence on information technology and digital devices expand,” Fitch said.

It added: “Threats from network intrusions, malware and phishing activity continue unabated. Recent growth in ransomware incidents provide a need for new protection and defensive tactics.”

This accords with what top London market brokers have recently told CyberInsurer.com. Although some insureds have chosen to walk away rather than suffer double- and triple-digit price increases for their cyber policies, many have decided that the peace of mind is worth the expense.

Cyber insurance has estimated annual premiums of $8bn to $10bn, which is projected by industry experts to reach up to $22.5bn by 2025. The US currently makes up around half of the total market by premium.