CYBER PREMIUMS INCREASED BY 34.3% IN Q4 2021, ROUNDING OFF A YEAR OF RECORD INCREASES FOR THE LINE, ACCORDING TO THE COUNCIL’S MARKET SURVEY.
The following are key takeaways from The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report Q4 2021 (October 1 – December 31):
- Premiums increased for the 17th consecutive quarter in Q4 2021, with respondents reporting an average premium increase across all account sizes of 8.7%.
- Prices increased for all lines of business, including Workers’ Compensation.
- Cyber had yet another record increase in Q4 2021, at 34.3%–the first time since the post-9/11 hard market where a line of business had an increase of over 30%.
- Respondents pointed to an increased frequency and severity of Cyber claims, as well as the difficulty of quantifying cyber risk, as a reason for the significant increases.
- Much stricter underwriting requirements for Cyber business remained a theme in Q4 2021, with several respondents noting carriers wouldn’t “entertain new business or renewal applications without MFA [multifactor authentication] in place” and, depending on the account, would require other risk mitigation practices, such as “EDR [endpoint detection and response], adequate backups and segmentation, or employee phishing training.”
For the Full Market Reports:
Download the Q4 2021 P/C Market Report: https://www.ciab.com/download/33125/
For Additional Information:
To learn more about the property and casualty insurance market, please reach out to us at Wells Insurance. Our headquarters can be reached at (910) 762-8551, or feel free to visit our website at https://www.wellsins.com/