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CYBER INSURANCE GROWTH OVER 92% BETWEEN 2020 AND 2021
Cyber premiums are skyrocketing. S&P Global Market says direct written premiums for standalone policies rose 92.3% between 2020 and 2021. Dollar-wise, 2021 hit $3.15 billion. The 2020 income was $1.64 billion. Big difference. Axis Capital Holdings Ltd. CEO Albert Benchimol says cyber is definitely in a hard market cycle. Fitch Ratings calls it the fastest growing of all U.S. property and casualty insurers. The ratings firm says rates jumped in 2021 because of hyper claims activity. It’s considerably higher than other lines of commercial insurance. Fairfax Financial Holdings was the biggest beneficiary of that hard market, and it wrote $436.3 million in premiums in 2021. That’s a jump of 302% over 2020’s $108.4 million. Benchimol said the average rate increase in the first quarter of 2022 was almost 70%. He noted in some cases the rate increase hit over 100%. Axis — he points out — also did very well and the $144 million in premiums is a 60% jump between 2020 and 2021. When it comes to cyber packages, they increased 47.6% between 2020 and 2021 to $1.68 billion from $1.14 billion. Chubb is the top underwriter. It gained over $70 million and went from $404.1 million in 2020 to $473.1 million in 2021. That’s a 17.1% hike. Source: S&P Global
July 2022 | Main Street Industry News | www.pianeia.com | 13
