The number of Marsh US customers who buy cyber insurance has doubled between 2014 and 2018 and has increased by seven percentage points compared to last year's level, with more companies out of hospitality and the gaming industry buying the coverage, a report issued by Marsh LLC on Thursday.
A total of 38% of brokers' customers bought Internet insurance in 2018, compared to 31% in 2017 and 19% in 2014, according to the report More Cyber Insurance Buyers as Awareness Grows.
The purchase rates of hospital and gaming companies have increased more than any other industry sector over the past three years, according to the report, as recent events have shown that the significant amount of personally identifiable information they hold makes them attractive targets for cyber attack.
However, two trends have pushed up Cyber Purchase Rates among "non-traditional" industries, the report says. One is losses expected to be increasingly covered by cyber policy rather than property or accidents. The other is the disturbances caused by WannaCry and NotPetya malware attacks.
"These attacks, combined with the latest, high-profile ransomware events, have made clear that cyber threats have evolved from data crushing and theft to now including business interruptions and supply chain disruptions," the report said.
Major companies buy higher cyber insurance limits, the report says. In 201
Average cyber rates for all businesses increased by 11% to $ 20.9 million in 2018 from $ 18.8 million in 2017.
Despite the increase in demand, pricing is still competitive due to a corresponding increase in supply, with an average cyber insurance coverage falling by 0.6% in 2018, according to the report which predicts the market should remain stable for the rest of the year, which prevents a change in the market.