A growing concern of cyber risk among corporations has led to an increase of cyber insurance purchases, according to a recent report by Marsh LLC titled Benchmarking Trends: Operation Risks Drive Cyber Insurance Purchases. The report notes that U.S. – based Marsh clients saw a 27 percent increase in standalone cyber insurance purchases from 2014 to 2015, which can largely be explained by an “increasing awareness and appreciation of cyber risk, from the boardroom to the data center.” Overall, average rates increased in 2015, but at a declining rate.
Additionally, limits and sub-limits for cyber coverage continued on an upward trend as companies of all sizes were buying higher limits in 2015. In fact, the average limit for companies of all sizes was $16.9 million – a 15 percent increase compared to 2014. In the overall cyber insurance market, it appears the total capacity remains plentiful with more growth in the future as companies improve in cybersecurity and the insurance industry obtains more actuarial data.