The share of businesses buying cyber insurance continued to increase in 2019, driven by growing recognition of cyber threats as a critical business risk, says a new report.
Marsh’s 2019 Cyber Insurance Purchasing Trends Report found that 42% of the broker’s U.S.-based clients purchased cyber insurance last year, up from 38% in 2018 and more than double the number of companies that purchased coverage in 2014.
Marsh said there was a modest rise in cyber insurance pricing last year, starting in the second quarter, with the average increasing approximately 3% in 2019 after years of declining or flat pricing.
Among the report’s other findings:
- The number of Marsh U.S. clients purchasing standalone cyber for the first time grew 18% in 2019 compared to 12% in 2018.
- Average cyber insurance limits for all companies rose to $21.3 million in 2019, up slightly from $20.9 in 2018.
- By industry, education once again led the pack, with a 74% take-up rate, followed by health care (65 %) and hospitality and gaming (61%). Hospitality was the fastest-growing industry for cyber, with an average annual growth rate of 37 % from 2016-2019, followed by manufacturing (34%) and education (27%).
- Marsh noted that while only 41% of manufacturers purchased cyber in 2019, that’s up from 30 % in 2018 and a fivefold increase from 8% in 2014. Marsh said this is likely due to the expansion of coverage to include cyber business interruption.
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