AMRAE publishes its second annual in-depth study of cyber risk insurance in France

Carriers have surpluses again, but cyber risk remains volatile

After experiencing heavy losses on the cyber risk market in 2020, insurance carriers responded by tightening all their underwriting conditions: in the case of large companies, for instance, premiums doubled, capacity shrank, and high deductibles were introduced. This constituted a very distinct reduction in insurance coverage. The adjustment was profitable for the insurance industry: the large-company market segment delivered high surpluses. But the conditions also drove businesses away, as 4.4% of previously insured companies decided to find other solutions for covering cyber risk.

Intermediate-sized enterprises (ISEs), whose technical results in insurer’s accounts declined sharply in 2021, are likely to face equally harsh renewals at year’s end. But the negotiations will be more transparent this time: AMRAE’s second-annual LUCY study, conducted with leading business-insurance brokers, provides an objective, in-depth view of insurance offerings, claims shistory, and technical results. True to its name, LUCY shines a new light upon cyber insurance.