Industries hardest hit by cybercrime have seen premium increases of up to 300% in renewal, said Risk Placement Services Inc., a unit of Arthur J. Gallagher & Co., in a report Monday.
Even with the right cyber security controls in place, organizations find it impossible to secure 2021 coverage with 2020 interest rates, RPS said in its US Cyber Insurance Market Outlook report. among those taking the toughest price increases, according to the report.
Insurance companies "strategically" raise premiums and lower coverage limits for these industry classes, RPS said.
Capacity constraints that took off in 2020 are also intensified, the report said.
"Insurance companies that were more than eager to issue $ 5 million for cybercrime in 2020 have been reduced to limits of $ 1
As a consequence, it has become more challenging to build a coverage tower for cyber liability, which requires additional insurance companies to reach the desired limits.
"This year's capacity changes, warranty standards and even premium increases were a necessary development," Steve Robinson, RPS national cyber practice leader, said in a statement. "Cyber insurance guarantee has become more reflective of today's risks."