Cyber rate growth may slow to 30-50% Q3 for best accounts: Brown & Brown

Rate growth for cyber insurance coverage could slow to a 30 to 50% annual pace in the third quarter for the most security-savvy insureds, but still leave laggards paying above 75% more the prior year levels.

"Capacity is slowly returning in the U.S., fostering competition on programs with quality controls implemented," analysts at brokerage  Brown & Brown said in their latest report.

London market capacity remains "constricted for the foreseeable future."

The upshot for rates: "Q3 2022 shows potential for lower increases of 30%-50%, with some potential for higher increases on historically competitive programs," analysts wrote.

While most carriers continue to offer maximum $5 million coverages, the increase in market capacity has allowed some to take increased limit factors at tolerable rates, authors added.

"However, insureds that do not have fully mature cybersecurity controls can expect the trend of 75%+ increases to continue."  Accounts with recent losses may not see much mercy, authors claimed.

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