Chubb overtakes AIG in US cyber insurance ranking

Chubb has surpassed American International Group (AIG) to become the largest cyber underwriter in the US, according to data by AM Best.

Chubb INA Group had $284.4 million in cyber direct premiums written in 2017, up from $133.5 million in 2016. AIG’s cyber direct premiums written in 2017 were roughly unchanged at $227.6 million in 2017 after $228.3 million in the previous year. Third placed was XL Catlin America Group which underwrote $177.9 million of cyber risk in 2017 after $160.8 million in 2016.

Also on the top end of the 2017 ranking are Travelers Group with $119.1 million of direct premiums written in 2017, followed by Beazley Insurance Company with $95.0 million and CNA Insurance Companies with $73.1 million.

As the cyber insurance market grows, carriers will likely retain larger amounts of the risk through underwriting operations, AM Best said. The rating agency noted that the implications of cyber risk for insurers extend beyond the affirmative cyber insurance market. Cyber events can also cause silent cyber losses, where policies written to protect against other types of losses such as property, D&O (directors & officers), and E&O (errors & omissions) find coverage from an event caused by a cyber peril. In addition to the exposure insurers face from their underwriting operations, they are also exposed to direct exposure from their business operations, which are heavily dependent on IT systems for high availability and high security transactions that are required for good customer service and building trust and reputation in a crowded market.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news Chubb overtakes AIG in US cyber insurance ranking Chinese insurtech ZhongAn gets SoftBank backing to go international AFL replaces CFO with Towergate hire in growth move Cincinnati insurance chief to step down; prompts leadership reshuffle Cyber stress test reveals potential insured losses XL Catlin appoints North America global risk leader from AIG

Don't miss our insurtech email newsletter - sign up today