Report: Cyber insurance market growth, performance
Recently, Aon released its US Cyber Market Update, the third edition of their US Cyber Insurance Profits and Performance study. The study looks at US insurers and is based on an analysis of data from National Association of Insurance Commissioners statutory filings. The report shows continued market growth, both in terms of premium growth and the number of US insurers writing the coverage. The report covers both stand-alone and package policies.
Some of the key findings:
- In 2017, premiums rose by 37% over the prior year to $1.84 billion
- 170 US insurers reported having underwritten cyber insurance in 2017, with 37 of those being new in 2017
- 79 insurers wrote more than $1 million and 36 wrote more than $5 million
- The top five cyber insurers accounted for 51% of direct written premiums, down from 52%
- The top 10 cyber insurers accounted for 69%, down from 73%
- Loss ratio decreased from 47.6 % to 32.4%
- Average claim size: $56,688, down from $90.865
In the report, Aon says that:
"By most accounts, 2017 was a very good year for US cyber insurers, despite the headlines garnered by WannaCry, NotPetya, and Equifax. The direct incurred industry loss ratio was 32.4 percent across all policies, with standalone and package business reporting 35.4 percent and 28.8 percent respectively."
Read or download a full copy of the report: Aon: US Cyber Market Update - 2017 US Cyber Insurance Profits and Performance (PDF)
See coverage of this report from Insurance Journal: How the U.S. Cyber Insurance Market Is Performing: Aon Report