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The cyberassurance remains a profitable market, says Aon

by

Justine Montminy

26 July 2018 11:30

Photo : Freepik

The market of the cyberassurance continues to be profitable in the United States, according to the report 2017 US Cyber Insurance Profits and Performance ofAon Benfield. In 2017, the loss ratio for the industry stood at 32.4 per cent against 47.6 per cent in the previous year.

The market is also on the rise as 170 u.s. insurers have stated to the subscription of cyberassurance, compared to 140 in 2016, and to 119 in 2015.

Increase in premiums

The number of premiums in the u.s. market increased by 37 %, which represents a total of 1.84 billion u.s. dollars in 2017. On the other hand, the average cost of claims has also decreased from approximately 91 000 us dollars in 2016, with 57 000 american dollars in 2017.

“Our study reveals that despite several cyber attacks significant in 2017, premiums have continued to increase, and the loss ratios have continued to decline. This is very encouraging for existing players and those looking to enter this sector of activity, ” explains the head of the cyberanalytique for Aon, Jon Laux.

A market still concentrated

The report from Aon shows that despite new insurers entering the market, it still remains concentrated. In 2017, the ten largest insurers in the cyberassurance accounted for 69 % of direct premiums written. However, this figure declined to 73 % from 2016.

The report 2017 US Cyber Insurance Profits and Performance of Aon are based on data from the National Association of Insurance Commissioners and shall take into account only the premiums written by u.s. insurers.

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