Published September 8th, 2023 by Kyle Langan
Organizations should consider hedging cyber tail risk with insurance. Traditional General Liability insurance contracts do not protect entities from cyber events. Conversely, an effective way to manage this risk is purchasing a specific contract with an agreed payout for covered causes of loss. At the close of 2023 Q2, data shows a correctional decline in the cost to mitigate cyber risk with insurance (Tokio Marine). Meanwhile, “ransomware appears to have returned to levels observed in 2020 and 2021 and concerns about cyberwar and systemic cyber events are at an all-time high” (Tokio Marine). This divergence indicates the balance of 2023 provides a timely opportunity for cyber risk mitigation. Widespread events can and will happen, while more sophisticated attacks develop (Tokio Marine). This is why many risk managers describe cyber events as the most dynamic or fastest emerging domain of risk.
Quarterly Cyber Rate Change
(Source: Marsh Global Insurance Market Index, Council of Insurance Agents and Brokers)
2023 Cyber Report. Tokio Marine HCC. https://tmhcc.com/cyber
Council of Insurance Agents and Brokers P/C Market Survey Q1 2021 to Q1 2023. The Council of Insurance Agents & Brokers. (2023, August 11). https://www.ciab.com/market-intel/pc-market-index-survey/
Global Insurance Market index 2023: Global Insurance Market index. Marsh. https://www.marsh.com/us/services/international-placement-services/insights/global_insurance_market_index.html