Manny Carmona: RCLS
Commercial Insurance Advisor
email@example.com 727-522-7777 ext 143
Sharp Pivots in Cyber Insurance Market Keep Brokers
A rapidly shifting cyber insurance market has brokers working harder to keep pace with coverage restrictions,
diminished capacity and some of the most significant underwriting and pricing moves to date—all amid heightened
client demand for a product now viewed as essential to any business.
Even as the broader property and casualty insurance market hardened, cyber insurance remained relatively stable,
with plentiful coverage at reasonable prices, according to brokers. That seems to be changing weekly, as cyber
insurers grapple with vast losses to an array of threats, chief among them being ransomware and systemic risk
aggregation. There are also isolated instances of quick underwriting reactions to the SolarWinds hack, which has
the industry nervous. However, these reactions are not yet widespread.
Nearly every carrier has implemented new application questions, usually with separate ransomware supplements.
Pricing and retention are on the rise, and available limits are lower. And when the market began to change, it
changed quickly and often.
“There were shifts in November, more shifts in December, more shifts in early January [and] more shifts in late
January,” Chris Reese, cyber and technology insurance practice leader at Lockton, said. “It’s the gift that keeps on
“It’s a brave new world this week,” said Mike Robison, national practice leader for CRC Insurance Services, who
spoke during a recent webinar hosted by the Wholesale & Specialty Insurance Association (WSIA).
"We haven’t seen every market act the same, but there is a substantially heavier focus on risk management and
controls directly correlated to ransomware exposure,” Christiaan Durdaller, president and CEO of INSURETrust,
said. “So, it’s a sign of what’s coming.”
Underwriters are no longer shy about walking away from business that doesn’t whet their appetite, with