The price of insurance limits in the technology, media and telecommunications (TMT) sector has dropped by almost 20% in the past two years, according to Marsh, the world's leading risk and insurance services firm.
A new Marsh report, Managing liability in the technology, media and telecommunications sector, surveyed 144 TMT companies across Europe and found that companies are not taking advantage of the softer market to purchase greater coverage, despite rising risks.
The firms benchmarked in the UK purchased €53 million in limits on average, while the median was €36 million.
Marsh said this differential may be attributed to the larger firms in the survey buying higher levels than their peers, suggesting a lack of awareness by the middle market sized firms on their liability exposure.
Fredrik Motzfeldt, European Leader for Technology, Media and Telecommunication at Marsh, said: “Many companies are not taking advantage of the low price of limits, despite the new risks the sector is facing. The technology, media and telecommunication sectors are all converging, and previously unanticipated risks are beginning to materialise. In an era of convergence, it is prudent for firms to assess all their exposures on a rolling basis.”
