Cyber insurance rate predictions include new alliances

Also in the news again – cyber insurance.     Lloyd’s has phased out coverage for state-sponsored cyberattacks.  Quoting CIO Dive:

Lloyd’s policy says the company’s role is to support a competitive and resilient cyber insurance market, but the bulletin has not mandated clauses for managing agents. Instead of applying a one-size-fits-all approach, the new guidance encourages managing agents to apply due diligence to the specific complexities of state-sponsored attacks. 

Data from S&P Global Ratings in July show considerable turbulence in the cyber insurance market. Cyber insurance premiums are expected to rise 25% per year to reach $22.5 billion in 2025, compared with about $9 billion in 2021. 

Wired with more on this – asking the question of who pays in cyberwar, particularly as the line between cyber war and government cyber activity continues to blur.   

Some insurance companies think they can do better with data – and work directly with the cloud providers. Per Protocol, The crux of the approaches is using a customer’s IT configuration data provided directly from the cloud providers, which can give insurers a degree of certainty they’ve never before had when assessing the cyber risk of potential policyholders.  Google, Microsoft, and AWS all have approaches with cyber insurers.  

One of my 2022 predictions is the idea of a link between financial incentives and the software providers.    It’s happening… here.   The link between the software vendors and the insurance companies is a natural match here. Insurance plus software appears to be the way this is going.

In the meantime, rates continue to go up… and 25 percent per year is the stake in the ground.