Steep cyber rate hikes may moderate: Marsh

More insureds are recognizing they could become the victims of a cyberattack as insurers adjust their pricing to reflect the risks’ increased frequency and severity, says Marsh LLC in a report issued Wednesday.

But there is “an increasing sense of cautious optimism, that the past several quarters’ steep rate increases are moderating because attritional losses are better controlled and premium growth exceeds incurred losses,” says the report.

Many organizations are strengthening their cyber hygiene controls, the report says.

It says the likelihood of rate moderation increases as underwriters become more confident in writing the coverage following an adjustment period, and there is increased competition and interest from new entrants.