Light Upon CYber insurance / © Amrae - 25 - WHAT TO REMEMBER l The cyber insurance market has returned to positive territory. This risk, which seemed uninsurable not long ago, has again attracted insurers in 2022. l After falling sharply in 2020 and 2021, the level of underwritten capacity has returned to growth. It has not yet returned to the 2019 level, but this should not be long in coming given the renewed interest of insurers in cyber risk. l After three years of increases, premium rates appeared to stall at the end of 2022, prompting companies to insure up to their exposure. l SMEs are following the same learning curve as large companies and smid sized companies. Cyber insurance is gradually penetrating all strata of our economy. l The cyber insurance market seems to have found a form of balance. The increase in the rate of coverage for companies and the decrease in the number of claims are positive signals, which should accelerate the growth of the market. l But this balance is still fragile: the total volume of premiums collected in France for cyber coverage is equivalent to the cost of a very large cyber loss. A large-scale attack would be enough to call this balance into question. l The war in Ukraine has not resulted in an increase in the number of cyber attacks in France. But nothing says that this will still be the case in the months or years to come. l Another element of uncertainty in the claims experience is that artificial intelligence could increase the frequency and intensity of cyber attacks. l Insurers remain cautious about a still volatile risk. As a sign of this caution, Lloyd’s of London has decided to modify its coverage of cyber warfare. l These new underwriting requirements could reduce companies’ appetite for cyber insurance. l To improve the attractiveness of cyber coverage, insurers should simplify the underwriting process and adapt it to the size of the company.
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