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2022 Cyber Liability Insurance Market Outlook

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The cyber insurance market is at a critical juncture for both insurance carriers and policyholders. While the last few years have seen increased competition among cyber insurance carriers, higher capacity and expanded coverage terms, both 2020 and 2021 saw a rapidly hardening cyber insurance market. Moreover, across industry lines, cyberattacks have surged in both cost and frequency. This increase in attacks has, in turn, resulted in a rise in cyber liability claims and subsequent underwriting losses. In light of these market conditions, it’s predicted that most policyholders will experience higher cyber liability insurance rates in 2022, with many insureds seeing double-digit rate increases. Apart from increased premium costs, insureds may also encounter coverage restrictions, further scrutiny from underwriters regarding cybersecurity practices, and exclusions or sublimits for losses stemming from specific types of cyber incidents. If policyholders fail to demonstrate proper cybersecurity protocols or have experienced cyber incidents in the past, coverage will be increasingly difficult to obtain.

Developments and Trends to Watch

Tips for Insurance Buyers

2022 Price Prediction

Overall: +15% to +50%

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