Insurers Choose Less Risk, Higher Premiums
July 13, 2023
In an interview, Shoshanna Simmons of CIC Services outlines a grim commercial insurance situation – sharply rising premiums, reductions in umbrella policy coverage, and problems obtaining and retaining cyber insurance. Inflation is a factor in premium increases, but there is a bigger one. The global financial impact of cybercrime predicted to jump from $8.44 trillion in 2022 to $23.84 trillion by 2027, would normally be considered an opportunity by insurers, which would spur competition to provide more coverage and different policies tailored to specific industries. But it hasn’t. Unwilling to take on risk, the insurers are increasing premiums for additional revenue. Companies in industries that have a high frequency of cybercrime can’t find a commercial carrier. To make up for the lack of new business insurers have increased premium prices across the board. They are also either tightening umbrella policy coverage or charging more for the same coverage.
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