Light Upon CYber insurance / © Amrae - 19 - Large companies: 2020, the year of change In 2020, the number of large companies covered by cyber insurance increased by 21%. The loss experience then exploded from €31M in 2019 to €205.10M in 2020. Faced with a very deteriorated loss ratio (190%), insurers reacted by increasing premium rates and lowering the level of available capacity. The premium rate for large companies has thus increased from 0.93% in 2019 to 2.70% in 2022. It has thus increased threefold. “This upward movement stopped during 2022, observes Philippe Cotelle. Premium rates would have begun to stabilize or even decline during the second half of the year.” To mitigate the very sharp increase in premium rates, insurers and companies have used the lever of the deductible, the average amount of which has also risen sharply: from €4 million in 2021 to €6.40 million in 2022. At the same time, available capacities fell in 2021 (from €41 million to €31.20 million). It has returned to growth in 2022, but at €35.20 million, it has not yet returned to the level of 2019 (when it was €38 million). The year 2020 was therefore a tipping point for the large corporate market: the very sharp deterioration in LOSS RATIO led to a very vigorous reaction by insurers, who cleaned up their portfolios by tightening underwriting conditions. This correction seems to have allowed the market to find its balance. However, this balance remains dependent on the loss ratio: let’s not forget that the volume of premiums collected on the large corporate market (€267 million in 2022) is lower than the cost of a very large attack... Although still precarious, this balance gives insurers appetite, who are returning to the cyber risk market, and confidence to companies: the coverage rate of large companies has risen sharply in 2022. Today, according to the Lucy study, 281 out of 287 large groups are insured: their coverage rate reaches 98%.
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