
Cyber re/insurance growth set to continue
Bermuda re/insurers said artificial intelligence will increase cyber threats.
Most people surveyed in a Bermuda:Re+ILS poll on cyber re/insurance expect their companies’ cyber re/insurance businesses to expand in 2025.
They also expect rates to continue to increase as demand keeps growing for insurance to defend against cyber attacks - now made more dangerous by artificial intelligence.
All respondents said they expected artificial intelligence to result in increased cyber threats.
Almost 25% of respondents, polled in December and early January, said their companies insured cyber risk, while 26% said their employers reinsured cyber.
Of those whose companies insure cyber risk, 70% said cyber insurance rates increased in the last year. Sixty percent of the respondents said reinsurance rates had been hiked.
Almost 76% said they believed cyber insurance rates will increase in 2025 while 82% predicted reinsurance premiums would rise.
Both insurers and reinsurers said their companies had seen growth in cyber in the last 12 months, with 66.7% of insurers reporting they had grown while 62% of reinsurers had expanded.
Respondents were more optimistic about 2025, with 68% saying they expected growth in cyber insurance this year and 64% expecting expansion in reinsurance.
Asked where respondents were seeing the most demand for cyber re/insurance, responses were varied. Respondents were able to give more than one answer, and 52% said ransomware was a leading source of demand, while 50% said critical infrastructure attacks were a strong line of business.
Forty-nine percent said cyber crime was a source of heavy demand. Almost 44% said systemic threats were a leading area of demand but just 12.5% cited political attacks.
The respondents said they thought growth was most likely in North America, with Europe the second most likely area of growth. The rest of the world was third while Asia Pacific lagged in fourth place.
More than 80% of respondents said they were seeing their clients increase their risk controls and crisis management protocols and that this was reflected in their rates.
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