Underwriters are remaining very selective in the risks they accept for renewal and terms for new business. If a business cannot demonstrate it has a systematic approach in place for best practice governance, processes, resilience and security controls to reduce overall cyber risk and potential claims activity, it is unlikely to achieve as positive an outcome in the market as a business with the right story to tell.

Insurers need to know that a business has absolute understanding of its risk, has appropriate plans in place to respond to an attack and has a strategy to recover from an attack.

In our Business Insurance & Risk Market Update H1 2023 report, we explore the key trends and the factors affecting cyber insurers' willingness to underwrite business risks, including:

  • pricing has stabilised for good cyber risks, with new capacity entering the market and a renewed appetite to underwrite risks
  • risk management is still key to accessing cyber insurance under the optimum possible terms and conditions, and it needs to be sophisticated and driven at board level
  • underwriters are increasingly focusing on data cache and supply chain risks
  • business email compromise.

Other topics in the report include:

  • placement ‒ premium increases have levelled out but risk selection is still critical
  • claims ‒ a maze of obstacles and contradictions surround the claims environment
  • professional and financial lines ‒ rate rises are stabilising but risks remain high
  • property ‒ rising property values create underinsurance headaches
  • workplace risks ‒ psychological risks in the workplace are the new business focus
  • construction ‒ liability concerns remain key for the construction sector.

Looking for business risk and insurance advice?

During this time of change you can turn to our Gallagher experts for advice and guidance. We are here for you and will do everything we can to help you face the future with confidence.

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