The Council of Insurance Agents & Brokers (CIAB) has revealed that the majority of respondents to a recent survey have reported an increase in demand for cyber insurance, with cyber risk continuing to be a top client concern in the second-quarter of 2019.
The CIAB’s Commercial Property/Casualty Market Report Q2 2019 utilises data from broker members and responses to a market survey. The second-quarter 2019 edition of the report reveals that cyber risk is at the top of clients’ minds, with 74% of respondents noting an increase in demand for cyber protection.
The report notes that a respondent from a midsize Southeastern firm said that many of its accounts purchased cyber liability this year whereas they declined in previous years.
During the second-quarter of 2019, 42% of respondents reported an increase in cyber claims, compared with 33% in Q1 2019. The CIAB explains that while this difference isn’t too dramatic, it might well be a result of the evolving cyber risk landscape, as well as stricter cyber regulations.
One of the top three client concerns reported by respondents was cyber risk, with 56% identifying the risk as a top concern, compared with 65% in the first-quarter of 2019.
Regarding capacity, and just 19% of respondents reported an increase in cyber capacity in Q2 2019, which compares with 40% in Q1 2019.
“Respondents’ clients were also noticeably concerned about “limitations on coverage”, which may be related to the decrease in capacity and the removal of extensions offered in previous quarters that respondents mentioned,” explains the report.
