The climb in rates is driven by an uptick in ransomware claims as well as insurers tightening cover rules
UK cyber insurance rates climbed by 92% in Q4 2021 – up from 73% in the previous quarter, according to Marsh’ Global Insurance Market Index published today (2 February 2022).
The rise was driven by an uptick in the frequency and severity of ransomware claims, as well as insurers tightening the terms and conditions of cover.
Further findings revealed that UK global commercial insurance prices have increased by 22% in Q4 2021 – down from 27% in Q3 2021.
While this is the 17th consecutive quarter of increases, however, rates are continuing to moderate since they began subsiding in Q1 2021.
Pricing increases across most regions moderated due to a slower rate of increase in property insurance, as well as directors’ and officers’ liability (D&O).
Lucy Clarke, president at Marsh Specialty and Marsh Global Placement, said: “We are operating in a challenging risk and insurance market and will continue to focus on developing solutions in classes such as cyber, which will continue to be difficult for both clients and insurers.
“More broadly, however, we expect continued moderation in rate increases through 2022, a trend which will be welcomed by our clients.”
Globally, commercial rates increased in Q4 2021 by 13%.
Property insurance pricing worldwide was up 8% on average – down from a 9% increase in Q3 2021.
Global casualty pricing rates were also up, by 5% on average – down from 6% in the previous two quarters.
The one exception to the moderating trend was Latin America and the Caribbean, where rates increased by 4% - up from 2% in the previous quarter.