At a time when insurance rate increases overall are moderating, cyber insurance rates continue to climb. Premium increases range from 150% to 400%.
In a symposium of the Professional Liability Underwriting Society reported in Business Insurance magazine, insurers stated they need more data from insureds about their cyber security controls. Supplemental applications ask if multifactor authentication, endpoint detection and response controls are in place. Companies that are unprepared for cyber attacks will be rejected; those with inadequate controls will see higher premiums and deductibles, lower limits and more restricted terms.
On the other side, brokers and insureds need clear explanations from insurers as to why their rates and conditions are what they are. Insurers should be showing how they arrive at their decisions, such as comparing insureds to a benchmark.
As the hard cyber insurance market continues, Beacon will continue to look for the best available terms.