LUCY - Light upon cyber assurance

Light Upon CYber insurance / © Amrae - 21 - Mid-cap companies: everything changes in 2021 The correction movement in 2020 in the large business market took place a year later in the mid-market segment. In 2020, the number of Mid-cap companies covered increased by 43%. This improvement in the coverage rate was reflected the following year in a deterioration of the risk: the loss ratio exploded from €12.70M in 2020 to €63.10M in 2021. The loss ratio then slipped from 85% in 2020 to 260% in 2021. The reaction of insurers was swift: premium rates were increased (from 0.45% in 2020 to 0.70% in 2021), deductibles were raised (from €227,000 in 2021) and the level of available capacity was lowered (from €7.50 million in 2020 to €6.50 million in 2021). This is the price at which the market returns to equilibrium, with an LOSS RATIO of 50.7% in 2022. It has thus regained the confidence of insurers and should make companies more attractive. To date, only 10% of Mid-cap companies are covered by cyber insurance. The number of companies covered has only slightly increased (+12%) in 2022: considering the potential of this market, we cannot really talk about growth. We will probably have to wait until 2023 or 2024 to see a real increase in the rate of coverage for small and medium-sized companies. Mid-cap companies: changes in the conditions of subscription 2020 2021 2022 % n Evolution of the average premium rate n Evolution of the average subscribed capacity 38% -7% 54% -8% -13% 56% 60 45 30 15 - -15

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