Cyber Insurance Rates, Purchases and Coverage Are Increasing
Cyber insurance purchases are on the rise. According to Marsh’s 2016 Cyber Benchmarking Trendsreport, there was a 27-percent increase in the number of U.S. clients purchasing standalone cyber coverage for the first time in 2015. The manufacturing industry saw the biggest uptick in new cyber purchases – a 63-percent increase over 2014. Enterprises in the Communications, Media & Technology field are also investing in cyber insurance, with a 41-percent increase in new buyers in 2014.
The amount of limits purchased was up 15 percent on average to $16.9 million for clients of all sizes. In addition, pricing for cyber coverage is stabilizing, after experiencing an average 12.1-percent increase in the primary rate per million of coverage in Q4 of 2015.
More companies are seeking coverage beyond simple indemnification for privacy breach costs. In addition to more industry-specific tailored policies, some carriers have begun offering enhancements that provide coverage for property damage, business interruption, loss of intellectual property and bodily injury from a cyber event.