(Reuters) — Rates on cyber insurance fell about 10% in June from a year earlier, reversing recent sharp rate hikes, as claims turned out to be smaller than expected, broker Howden said in a report released on Wednesday.
Cyber insurance prices more than doubled in 2021 during the Covid-19 pandemic, driven by an increase in ransomware attacks, Howden said.
The number of global ransomware attacks fell by 20% in 2022 from a year earlier after the start of the conflict between Russia and Ukraine, as hackers in those countries focused on the military effort, Howden said.
Insurers have also called on their customers to do more to protect themselves against attacks, reduce risk and encourage insurers into the market, after a period of nervousness.
“Everyone is back with an appetite for cyber insurance,”; said Shay Simkin, global cyber director at Howden.
Increased competition has contributed to lower prices, Howden said.
Cyber insurance premiums were more than $12 billion in 2022, compared with $10 billion to $11 billion in 2021, Simkin said, and Howden predicts the market will grow to about $50 billion by 2030, given the scale of cybercrime.
Ransomware attacks rose 47% in the first quarter from a year earlier, as hackers again focus on commercial profit.
“At the end of the day, they have to make money,” Simkin said.