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Ferma president Jo Willaert told those gathered for the Cyber Risk – Rising to the Challenge conference that there has been sea change in the quality of cyber insurance. “Insurers and brokers have learnt a lot. They used to come with a product and 50% of the policy was often covered in other lines. But since then the market has revolutionised and I am really pleased, and must thank the insurers and brokers, that it has responded,” he said.
Fellow speaker Kyle Bryant, regional cyber risk manager for Europe at Chubb, said the insurance industry’s “credibility is on the line” as it is tested by cyber risk. Like Mr Willaert, he believes the cyber market is gaining credibility but stressed it needs to maintain this progress.
Mr Bryant said insurers have come a long way in developing credible cyber solutions, and brokers have invested significantly in their ability to provide risk management consulting. During the past three years, coverage has expanded with bespoke polices increasingly meeting customers’ needs, continued the American. He said today it is hard to find a cyber risk that cannot be insured, but cover may require large retentions.
Raf Duvyer, cyber expert adviser and broker at Aon Belgium’s financial services group, agreed that pretty much every cyber risk can now be insured. But “everything has a price” and “large deductibles” might be necessary, he added.
When it comes to capacity and limits, Mr Bryant explained that 95% of cyber risks can be absorbed by the market with no problem at all. Mr Duvyer said capacity continues to rise and insurers are being attracted to the cyber market in greater numbers than most other lines of business.
Mr Bryant said the big question now is whether there will be enough cyber premium and coverage in the future for protection to stay relevant as the risk grows.
“Sustainability is something we all need to think about,” he said.
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