Cyber insurance rates dropped around 10 percent in June compared with a year earlier, reversing recent sharp rate rises, as claims proved smaller than expected, broker Howden said in a report.
Cyber insurance rates more than doubled in 2021 during the Covid-19 pandemic, driven by a rise in ransomware attacks, Howden said.
Ransomware works by encrypting victims’ data and typically hackers offer victims a passcode to retrieve it in return for cryptocurrency payments.
But the number of global ransomware attacks fell by 20 percent in 2022 from a year earlier.
Insurers have also demanded their clients do more to protect themselves against attacks, lessening the risks and encouraging underwriters into the market, after a period of nervousness.
“Everybody is back with appetite for writing cyber insurance,” said Shay Simkin, global head of cyber at Howden.
Increased competition has contributed to lower rates, Howden said.
Cyber insurance premiums totalled more than US$12 billion ($17.9 billion) in 2022 versus US$10-11 billion in 2021, Simkin said.
Howden forecasts the market to increase to around US$50 billion by 2030, given the size of cyber crime.
Ransomware attacks rose 47 percent in the first quarter from a year earlier, as hackers focus once more on commercial gain.
“At the end of the day, they need to make money,” said Simkin.
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