24 May 2019 13:30
An analysis of the firm credit rating Fitch Ratings noted a drop in the growth of the insurance market in switzerland against cyber risks in the United States. In fact, the direct written premiums of the industry increased by 8 per cent in 2018, compared to growth of 37 % registered in the previous year. They have crossed the milestone of two billion u.s. dollars.
“After several years of strong growth, revenues for the sector of the cyberassurance in the United States have experienced a moderation in 2018,” observes Gerry Glombicki, director of insurance at Fitch Ratings. We continue however to believe that the cyberévènements large scale, the desire for a risk-management more sophisticated and pricing improved will be the segment in the long term. “
Fitch says that the brokers and market experts show greater adoption of the coverage, and they see a potential expansion of the market. “The United States is by far the largest market in the world in terms of cyberassurance’, sets out the firm.
A profitable market
Market data demonstrate that it is cost-effective. The loss ratio for the policies self-sustaining is set at 35 % by 2017 and 34 % by 2018. Insurance premiums for these policies have increased 12 % in 2018.
However, this profitability is not guaranteed in the future, warns Fitch. “The historical data are limited on the claims pose problems for new subscribers. The insurers who underwrite policies cyberassurance face great uncertainty as to the measure of the probability and costs ultimate cyberévènements potential, which can range from attacks to energy infrastructure from attacks by rançongiciel or the technology of cloud computing, ” explains the firm.
“Fitch is concerned that favourable outcomes to promote competition on the prices, terms and conditions of the subscription are more flexible and a capacity of naive, which could seriously disrupt this market immature and untested,” adds Dr. Glombicki.