Near-term, UK cyber rates may slide; mid-term it’s anybody’s guess: AJG
Rising competition will continue to put downward pressure on cyber rates in the UK for the coming six months, but upwards trends in claims cannot be overlooked for long, analysts at global insurance broker AJ Gallagher have declared.
“In the next six months, we believe that competition will continue to drive prices down, which will reverse some of the corrections endured over 2021 and 2022,” authors wrote of outlook.
The outlook thereafter becomes “more difficult to predict” as claims rise and the ever-present risk of systemic events hovers over. Ransomware, still in the forefront, has seen raw numbers go down, but it is not the only game in town, authors warned.
The best rate-suppressive news for the cyber lines came January 1 from the global reinsurance renewals. The lack of any major upward move in rates “removes one potential catalyst for further rate increases.”
Amid that mid-term uncertainty, Gallagher is pushing clients to recapture any limit that might have been lost oin the 2021-2 market hardening.
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