Cyber rates ‘nowhere near’ forcing corporates out of coverage as market leans on other cures: Marsh

Skyrocketing cyber insurance rates have yet to force any corporate clients entirely out of their cyber coverage, officials at  Marsh McLennan claim.

“At some point would that become the case? Sure, that is the potential, but I don’t think we are running into that risk at the moment,” COO John Doyle (pictured) told the Q4 investor conference under questioning. The market is rather “finding equilibrium”.

Rate hikes visible on the market chiefly reflect individual risks following to-date rise in ransomware attacks, Doyle insisted. Fears of aggregation in risks may be overstated and rather go to changes in terms and conditions, comments suggested.

“The underwriting community in cyber is still reacting to frequency and severity of ransomware and they’re worried about systemic as well, but I think the market right now is more driven by ransomware,” Doyle said.

The upward rate pressure can get taken down in scissor action between client preventative action and insurer limits, exclusions and other terms. “It doesn’t all result in higher premiums,” he added.

While cyber rates remain the outlier into 2022, the market is “nowhere near the place” where anyone would resign in full on account of price, a fellow Marsh official told the conference. “You’d have to be a pretty brave company to decide not to buy cyber if it is presented at the board level.”

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