After three years of hardening conditions, the cyber insurance market has finally begun to show signs of stabilization. From a premium perspective, cyber insurance buyers are seeing smaller rate increases and, in some cases, even flat renewals.

Author: John Farley

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However, there are clear signs that we won't be reverting to the soft market conditions from a few years ago. First, the offered products cover less, with new restrictive policy wording imposed by several carriers in 2023. Secondly, the strict underwriting control requirements mandated last year will persist, while the demand for capacity appears to continue outpacing supply. Finally, there's a growing concern among cyber insurance markets around systemic cyber risk, where the focus remains on quantifying a potentially catastrophic cyber event and estimating the probability of one occurring. This underlying concern will likely persist through 2023 and work to support the current conditions that will maintain the tenants of a challenging cyber insurance marketplace.

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