Cyber and umbrella insurance premiums again soared in the second quarter of 2021, according to The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Index.
Property/casualty insurance lines in the U.S. increased for the 15th consecutive quarter.
The CIAB survey showed increases in all lines of business but said premium increases moderated in Q2. Survey respondents reported an average jump of 8.3% across all-sized accounts.
Cyber insurance prices saw the highest premium increase out of all lines, rising 25.5%. Prices continue to climb as average prices rose 18% in Q1 2021 and 11.1% in Q4 2020.
“Carriers continued to approach writing Cyber risk with caution in Q2 2021,” said Ken A. Crerar, President/CEO of The Council. “The rapid increase in ransomware attacks highlighted the need for brokers to work with clients to develop and practice robust risk management strategies to confront the growing threat.”
Source: CIAB Q2/2021
Most respondents said a rise in ransomware attacks was one of the main drivers behind the Cyber price jump. The survey also found that carriers noted a “more stringent” regulatory environment, social engineering schemes, and increased litigation costs” as justification for pricing increases.
Respondents also mentioned carriers noted a “more stringent state/federal/international regulatory environment” and “social engineering schemes and increased litigation costs” as justification for pricing increases.
Capacity contracted according to the report, with more than 80% of respondents reporting a decrease in Cyber.
While Cyber insurance saw the highest price jump this quarter, respondents agreed that Umbrella also continued to experience issues. As a result, prices for Umbrella increased 17.4% in Q2, down slightly from 19.7% in Q1.
Read the full Q2 2021 CIAB report here.
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