Cyber reinsurance market ‘finally favourable’ for buyers: Aon

Following several years of hardening, the cyber reinsurance market “finally moved favourably for buyers” in 2024, broker Aon said in its review of the market published for the Monte Carlo Reinsurance Rendezvous.

“Cyber reinsurance capacity remains ample to meet [demand], and continues to grow, with existing players expanding, new players entering the market, and growing interest from alternative capital markets,” Aon said.

The broker noted the concerns shown by some carriers in respect to cyber war exposures, although it added that alternative reinsurance capacity offering broader wordings is “readily available” in the market.

Aim expects gross written premiums in the global cyber market to double to $30bn by 2029, having tripled since 2020 to around $15bn today.

“The recent CrowdStrike/Windows outage in July is likely to further increase demand for cyber insurance, as well as technology errors and omissions insurance, an often overlooked and undervalued risk,” Aon said.

Insurers” loss ratios have improved markedly in 2022 and 2023, leading many of them to seek to retain profit by scaling back their reliance on quota share at renewals while using more non-proportional reinsurance to manage tail risk, Aon said.