Traditional reinsurance companies will start offering meaningful cyber capacity in 2024 as cyber insurance is one of the fastest growing lines of insurance to emerge in a generation, according to the CEO of cyber risk analytics specialist, CyberCube.
In a series of predictions from CyberCube published this week, Pascal Millaire claimed many traditional reinsurers have not seen cyber as an area of growth but 2024 will lay the groundwork for future growth of capital.
He said: “As reinsurers look at traditional lines of insurance being transformed by internet-connected risk, as well as the opportunity to participate in a rich new line of insurance, those reinsurers who were hesitant to dip their toe in the waters of cyber will increasingly see the imperative to do so.”
The wide-ranging predictions include expectations that there will also be further development of the insurance-linked securities (ILS) sector to create a long-term sustainable and thriving marketplace. While there will be an increase in the frequency of cyber attacks fueled by the proliferation of Artificial Intelligence (AI), the insurance sector will work more closely with SMEs to address their needs. The report forecasts that insurers and the public sector will combine to strengthen societal resilience to major cyber events. For the broking sector, those companies that create a comprehensive cyber strategy will set themselves up for a successful 2024.
Admiral (ret.) Michael S. Rogers, former Director of the NSA and Commander of US Cyber Command who is on CyberCube’s board of directors, noted that traditionally, attackers have focused on the bigger players, but the proliferation of attacks is increasingly focused around small and mid-sized entities, regardless of the sector. “With the SME market becoming increasingly targeted, the insurance industry will need to work with companies even closer to create a more robust cyber risk mitigation strategy across the board,” he said.
Other contributors to the report include board member Michael Millette, Managing Partner at Hudson Structured Capital Management Ltd.
CyberCube’s report is now available — Cyber Predictions 2024.
About CyberCube
CyberCube delivers the world’s leading cyber risk analytics for the insurance industry. With best-in-class data access and advanced multi-disciplinary analytics, the company’s cloud-based platform helps insurance organizations quantify cyber risk to facilitate placing insurance, underwriting cyber risk and managing cyber risk aggregation. CyberCube’s enterprise intelligence layer provides insights on millions of companies globally and includes modeling on thousands of points of technology failure.
The CyberCube platform was established in 2015 within Symantec and now operates as a standalone company exclusively focused on the insurance industry, with access to an unparalleled ecosystem of data partners. It is backed by Morgan Stanley Tactical Value, Forgepoint Capital, HSCM Bermuda, MTech Capital, individuals from Stone Point Capital and Scott G. Stephenson. For more information, please visit www.cybcube.com or email info@cybcube.com.
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