June 19, 2019 11:30
Photo : Depositphotos
The number of insurers offering cover against cyber risks is increasing in the United States, but the growth of premium volume is less than in previous years. This is revealed by the study 2018 US Cyber Insurance Profits and Performance, achieved by Aon plc.
The results reveal that 184 insurers in the country have offered a product of cyberassurance in 2018, an increase of 14 compared to 2017.
In addition, the volume of direct premiums written in this segment increased 10% to reach us $ 2.03 billion. However, according to Jon Laux, director of the sector of the cyberanalyse for Reinsurance solutions to Aon, this figure shows a slowdown in the growth of insurers.
“Us insurers, despite their performance during the last 12 months has shown a growth much lower than in recent years. In 2016 and 2017, the growth ratios were around 30 %, ” he says.
He asserts, however, that the market of small and medium-sized enterprises (SMES) has been a good year 2018. “The risks associated with small and medium-sized enterprises are profitable for the insurers, because the frequency and severity of claims are much less important “, he explains.
Increase in the number of claims
The ratio of loss due to this type of insurance policy is 35.4 %. “The market for cyberassurance was cost effective” says Aon.
The company argues that there is a slight deterioration compared to the previous year, but that this can be explained by the number of claims is increasing. In fact, by 2018, the average of claims was 4.2 per 1000 fonts, compared to 3.5 in 2017.
In addition, the study shows that the average of the amounts claimed has decreased. In one year, it has increased from 56 688 $ 50 401 $.
Tightening of the market
Aon notes that the 5 largest insurers in regards to the cyberassurance hold 53 % of the market. This is an increase of 2 % in one year. The top 10 occupies 70 % of the units, one can read in the report.
“This is a significant change, because in 2017, the growth of small players was more important than the market average,” notes Aon.