Cyber insurance takeup stable in 2018 first half: Broker report
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The takeup rate for cyber insurance remains flat at 32%, capacity remains plentiful or is increasing, and premium prices have largely stayed the same over the past six months, says a biannual survey by the Council of Insurance Agents and Brokers issued Monday.
The survey by the Washington-based organization also found that 32% of respondents’ clients were first-time buyers.
“Although brokers and their clients reported an increase in attention and awareness on cybersecurity and cyber coverage, we still have not seen (it) translate to an increase in take-up rate,” said CIAB President and CEO Ken A. Crerar in the report.
Of those who renewed their coverage, about 45% increased their levels of coverage, which is an increase from the 39% that did so in the previous October 2017 survey, according to the survey.
A total of 72% of respondents’ clients use stand-alone rather than embedded polices for cyber coverage, compared with 69% in the October survey, according to the survey report.
The typical cyber insurance policy limit was $3.2 million, with 89% of respondents reporting that premium prices either stayed the same or decreased over the last six months. A total of 78% said market capacity is either plentiful or decreasing.
A total of 80 council members responded to the survey, which was conducted by email between June 1 and June 30.
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