Cyber premiums increased by 21% in 2020 from 2019, but the insurers' loss ratio also increased, a survey found.
USA. Direct cyber premiums increased to $ 2.74 billion in 2020, compared to $ 2.26 billion in 2019. The direct industry's loss ratio was 67%, compared to 44.9% in 2019, according to Aon PLC's annual market report on the US cyber market released on Wednesday .
The higher loss ratio was mainly due to increased severity, Aon said, pointing to ransomware claims that resulted in increased claims of incidence response as well as extortion requirements. % 2020.
The report's data is based on the National Association of Insurance Commissioners' statutory archiving, and the report warns that it has an inherent delay of 1
"As a result, the experience of cyber insurance companies under FY2020 policies written in 2019 reflects almost as much [as] 2020", it says.
“Although the sharp increase in loss ratios is bad news, there is also some good news: Insurers have already had considerable time to respond to trends now through NAIC data, in the form of guaranteed measures and interest rate hikes.
"In fact, prices increased significantly in the second half of 2020 and have accelerated further in early 2021," the report said.