Pricing for cyber premiums increased 8.4% in the first quarter of 2023, while stand-alone policies account for a majority of total US cyber premiums, a report published Friday said.
Oldwick, New Jersey-based AM Best Co. said in its report that the rate increase is “notable,” although it is “still a long way off” the peak of 34.3% reported in 2021’s fourth quarter by The Council of Insurance Agents & Brokers.
The report said bundled cyber insurance accounts for a large number of policies, but a smaller share of US cyber premiums. “Standalone cyber insurance has become the policy of choice among larger insureds,” it said.
Excess insurers dominate the cyber market, the report said. “Surplus underwriters have taken advantage of the price increases on new business and absorbed almost all of the growth in the cyber market, resulting in greater profits for them,”; the report said.
It said the top four group cyber underwriters remain unchanged from a year ago: Chubb Ltd. unit Chubb INA Group; Fairfax Financial Holdings Ltd. unit Fairfax Financial (USA Group); Axa SA unit XL America Co.; and Tokio Marine Holdings Inc. unit Tokio Marine US PC Group.
The top 20 insurers account for 78% of the cyber market, it said.