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Interest in stand-alone cyber insurance surges

Posted On: Oct. 20, 2015 12:00 AM CST

Interest in stand-alone cyber insurance surges

The number of U.S.-based Marsh L.L.C. clients purchasing stand-alone cyber insurance increased 32% for the first half of 2015 compared with the first half of 2014, while renewal rates were in the double digits, the brokerage said in a report issued Tuesday.

The report, “Benchmarking Trends: Cyber-Attacks Drive Insurance Purchases for New and Existing Buyers,” also included an analysis of cyber insurance purchases by industry sector.

Power and utility companies more than doubled their takeup rates in the first half of 2015 to 19% of Marsh clients from 9% during 2014's first half, while universities and other organizations in the education sector increased their takeup rates by almost 90%, to 36% from 19% for the comparable period in 2014.

Health care organizations had the highest takeup rates by sector in the first half, with 41% purchasing the coverage, compared with 37% at the end of 2014's first half.

The study also found that among all industries, cyber insurance limits increased an average of 16.5% to $12.7 million.

Meanwhile, the average rate increase at renewal was 16.1% per $1 million of coverage for the primary layer during the second quarter of 2015, while there was a 20% increase for the total program, according to the report.