Business on October 05, 2021
AMRAE’s Annual Insurance Market Study has just been released.
AMRAE has just published its annual study on the insurance market with a focus on different types of contracts, including cyber insurance.
AdvertisingThe Association for Risk Management and Business Insurance (AMRAE) has just published its “State of the market and prospects for 2022 – Business Insurance”. This annual study by the French professional association of risk managers provides an update on insurance trends with differentiation by type of contract. Among these types of contracts, there are of course insurance contracts against cyber risks.
In general, the insurance market, in almost all types of contracts, tends to decrease the capacity of insurers, a decrease in the scope of risk coverage but an increase in subscription prices and deductibles. If, in some very mature niches (such as car insurance), this general trend is attenuated, with stability in certain changes in the four analysis criteria, clearly this is not the case of cyber insurance. In these insurances, the fall in the capacity of insurers and the scope of risk coverage associated with an increase in subscription prices and deductibles are particularly marked, sometimes even doubling the premiums or deductibles. The “ransomware” guarantee is being lowered.
Furthermore, the cyber insurance market is now experiencing some maturity. Players are concentrating with, as a consequence, a shortage of supply and a level of demand that increases considerably on the part of insurers. An actor with a particularly risky profile (especially in sectors affected by disasters such as logistics) will have great difficulties in contracting cyber insurance. The subscription (or renewal) procedure, in the same way, becomes cumbersome and therefore must be very early. AMRAE warns: “the breakeven point that would allow us to consider a stabilized cyber insurance market seems very uncertain in the long term. “
On the same topic
– May 26, 2021: AMRAE sheds light on cyber insurance with its study of Lucy
Article written by
Bertrand lemaire, CIO Editor-in-Chief
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