Cyber insurance demand saw growth in 2012: Marsh
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Demand for cyber liability insurance increased last year as more companies bought the coverage and average policy limits increased, said Marsh Inc. in a report issued Thursday.
The number of Marsh's FINPRO practice clients that purchased cyber insurance grew by 33.3% in 2012 from 2011, according to the report “Benchmarking Trends: More Companies Purchasing Cyber Insurance.”
While the trend was seen across most industries, it was most notable in the services sector, which includes professional, business, legal, accounting and personal services, and in education, where the increase was 75.5% and 72.2% respectively.
Highly visible data breaches have led more insurance buyers to view cyber insurance as an essential purchase rather than a discretionary one, particularly among smaller and midsize entities, says the report.
Robert Parisi, New York-based Network Security and Privacy Practice Leader for Marsh, said in a statement that companies “are now looking to manage their day-to-day cyber risks in the same way they do more traditional risks — through the purchase of insurance.”
Meanwhile, limits purchased in 2012 averaged $16.8 million across all industries, an increase of almost 20%. Communications, media and technology led all industries, both by average limits purchased, $33.4 million, and the rate of increase in limits over 2011, nearly 36%, according to the report.
