Privacy and data protection have big impact on US cyber insurance market, says Kynd survey
In the lead-up to our focus on cyber, Intelligent Insurer took to the virtual streets earlier this year on behalf of cyber risk management company Kynd, to ask industry leaders in their field about their opinions on the current cyber market.
Over the next four articles, we delve into the difference between US and UK cyber insurance markets, the challenges of assessing cyber risk and improving your cyber offering, and some insight into working more closely with insureds.
Launched ahead of Intelligent Insurer’s upcoming Cyber Risk and Innovation USA 2024 conference, the first report in our mini-series reveals what’s having the biggest impact on cyber in the US and what our respondents believe the top drivers will be.
Over 60 percent of participants believe the global cyber insurance market is expected to harden over the next 12 months. In line with this response, just under 60 percent believe cyber underwriting standards will increase, with 33 percent stating they will remain the same.
The top driver for cyber insurance sales in 2024, according to one-third of our participants, will be value-added risk management services, followed closely by better visibility and articulation exposure. Fear of business impact and regulatory changes came third and fourth on the list, with “requirement by a third party” ranked the lowest.
US respondents stated that the key factor having the most significant impact on the cyber insurance landscape is legal issues. Privacy and data protection laws topped the list, followed by regulatory reporting requirements.
Competition and maturity within the insurance market came third, followed by data availability and claim severity and frequency. Government involvement or support was seen as having little impact on the American cyber insurance market.
Whether in the US or the UK, the risk of an attack by a threat actor is the same. Our next survey report focuses on the challenges of assessing cyber risk.
To view the full results of our cyber insurance survey, click here.
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