Rising cyber capacity bringing 5-10% rate cuts Q3: Brown & Brown

Rising insurer capacity in cyber liability lines is delivering a 5-10% decrease in rates and broadened coverage, US insurance brokerage  Brown & Brown said in its report on Q3 markets.

“Carriers are facing considerable pressure to grow their books of business, creating competition for customers with strong controls,” authors said.

Beyond the softening of rates from peaks hit in 2022, broader coverage, lower retentions and, in some cases, higher limits are resulting from the increased competition. Cuts in retention are most visible for the large risk accounts that had seen the headiest increases in recent years, authors claimed.

Capacity from new and returning players to the segment is also helping to ease conditions for large and layered programmes.

Much of the new capacity is said to be focused on excess layers with a palpable impact towards rate softening, authors said, with the caveat that price decreases will tail out for large towers as premiums reach a minimum price for capacity in the high layers.

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