Although the cyber insurance market remains an accessible and affordable means of transferring risk for insureds, there has been signs of caution from insurers as a result of the increasing claims activity in 2020, says Marsh.
In its report “Cyber Insurance Market Recap 2020”, Marsh notes that in an effort to sustain profitability, insurers are increasing cyber premiums (15-20% average increases in Australia), capping limits, and requiring more underwriting information.
Nevertheless, the cyber insurance market size is expected to continue to grow as companies and boards increasingly focus on cyber risk management. This has led to higher limits being purchased and a sizeable growth in the number of cyber insurance policies placed in Australia.
Marsh says that the Australian cyber threat landscape continues to be challenging for organisations as the rise in remote working arrangements and the online shift of workforces has consequently expanded potential entry points for threat actors throughout 2020. Supply chain and ransomware attacks continue to feature in the risk landscape.