Beazley’s cyber premiums soar 66%

Beazley’s cyber premiums soared 66% in the first nine months of 2022, buttressed by a highly favourable operating environment. 

Beazley actually wrote slightly less cyber business than it originally expected, because of the slowdown in rate increases. 

However, the company remains on track to write about $1.3bn in cyber premium in 2022 - its original target. “It might be a bit under, it might be a bit over. I really don't know yet, but it won't be it won't be a million miles off [$1.3bn],” chief executive Adrian Cox told analysts during a conferene call.

Beazley’s cyber risk premiums soared to $828m for the first nine months of 2022, up from $505m in the year ago period, as the company increased exposure and raised cyber rates by an average of 51%.

This meant that cyber risks have now vaulted from being Beazley’s third-biggest line, behind MAP risks and property risks, to become the company’s biggest. 

“The improving trajectory on the frequency of our ransomware claims in our cyber portfolio has continued following the remediation action we have been taking since October 2020,” Beazley wrote. “The latest data shows frequency reductions of 35% per policy, and 70% when premium rate changes are also allowed for.”

Cox also pointed that new capacity is entering the market, increasing competition for business.

“I think we are seeing the market open up again on cyber,” he said. “It’s not necessarily new money into the marketplace, but existing carriers being a bit more positive than they were in the first quarter.”