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2023 followed several turbulent years for the global cyber market; 2020 and 2021 were severely unprofitable for cyber insurers globally. Carriers were forced to put the brakes on; many paused writing new business or reduced limits and coverage for renewals as everyone grappled to understand what a good risk genuinely looked like.

This period witnessed a transition of underwriting methodology, not only regarding requirements of rate and retention but also the minimum controls and risk management needed to deem a risk insurable.

COVID-19 (and the global shift to a remote workforce) and the beginning of the ransomware epidemic were two main factors driving this. Combined, they highlighted cybersecurity vulnerabilities across the globe.


  • 2023 saw an increase in claims compared to 2022, with ransomware notifications remaining at the forefront
  • The average cost of a data breach reached an all-time high of USD 4.45 million in 20231
  • One of the most significant changes in 2023 was a softening approach toward the minimum-security controls insurers require to offer cover
  • The cyber market is in a precarious position currently; industry experts are anticipating another market hardening, and 2024 may witness a significant market shift



1.Cost of a Data Breach Report 2023, IBM, July 2023


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