Cyber coverage increasingly consistent in terms of pricing and coverage: PartnerRe

The majority of brokers have reported increased market consistency in pricing and coverage with regards to cyber, according to PartnerRe’s annual Cyber Market survey.

The survey, titled Cyber Insurance – the Market’s View, conducted in partnership with Advisen, found that 61 percent of brokers saw increasing consistency in terms of pricing, with 72 percent reporting increased consistency in coverage.

However, the report found that nearly two thirds (64 percent) of brokers still limit the number of carriers they work with in order to achieve greater consistency.

Meanwhile, PartnerRe reported increased understanding about cyber coverage, with the number of respondents citing understanding as a top three sales obstacle falling to 51 percent, from 63 percent last year.

Brokers reported that cyber prices have increased by 5-10 percent, while cyber-related business interruption remains the most sought after form of cyber coverage, with 68 percent of respondents putting this in their top three coverages.

The report found that six out of ten respondents agree that insureds frequently request higher limits

It also highlighted persistent concerns around silent cyber exposures, with 65 percent of underwriters indicating they are concerned by non-affirmative cyber in specialty property.  One underwriter told PartnerRe that silent cyber issues “can cause serious surprises in manuscript all risk policies that have been in the market for a long time.” A number of other commenters said companies are taking steps to eradicate silent cyber in their policy wordings.

The global survey took place during the second quarter of 2020, with 260 cyber insurance brokers and 190 cyber underwriters from around the world sharing their observations and views on the latest trends and developments.