My good friend Judy Greenwald reported in BusinessInsurance.com that “based on National Association of Insurance Commissioners statutory filings, found that while the number of insurers offering cyber increased to 184 from 170, premiums grew by 10.3%, to $2.03 billion.” The June 11, 2019 report entitled “Growth in insurers’ cyber business slowing: Aon” included these details from Aon’s U.S. Cyber Market Update, 2018 U.S. Cyber Insurance Profits and Performance that the 2018 was actually a decrease:
This compares to a 36.3% increase, from $1.35 billion, between 2016 and 2017, and a 35% increase, from $1 billion, between 2015 and 2016.
Here were some interesting comments about market size:
The report said one relative bright spot in 2018 growth was in the small commercial cyber space.
Because the NAIC data does not neatly allow segmentation by company size, Aon focused on insurers it believes are focused primarily on small commercial accounts and aggregated that group’s results.
It concluded these small commercial writers wrote $458 million in premium in 2018, an 18.7% increase from 2017.
Given the level of cybercrime it is no wonder that premiums are increasing!
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