Marsh has introduced Cyber Echo Encore, an extension of its Cyber Echo insurance facility, allowing clients to access up to US$45 million in additional cyber insurance capacity.
The coverage is underwritten by London market insurers outside Lloyd’s, providing policyholders with expanded options while maintaining the streamlined access and placement process of the original Cyber Echo facility.
Cyber Echo, launched in 2016, offers up to US$125 million in cyber insurance cover and is the largest facility of its kind. Since its introduction, it has facilitated nearly US$50 billion in coverage for around 500 clients worldwide.
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Marsh notes that Cyber Echo Encore broadens the reach of Cyber Echo beyond the Lloyd’s market while retaining key features such as simplified underwriting, placement, and claims handling. It also maintains the ability to reinstate coverage within the same underwriting year following a loss.
Serena France-Hayhurst (pictured above), UK cyber placement leader at Marsh, noted that as cyber threats increase, businesses seek standalone cyber insurance solutions that align with their evolving risk profiles.
After a period of significant expansion, the cyber insurance market experienced a modest contraction of 2% in 2023, indicating a stabilisation following previous rapid growth. This stabilisation suggests that, while the market has matured, capacity has remained relatively sufficient to meet demand.
In 2024, the stabilisation continued, with reports indicating that cyber insurance rates remained flat or experienced slight declines. In the third quarter of 2024, global commercial insurance rates decreased by 1%, marking the first quarterly decline in seven years, with cyber insurance rates specifically decreasing by 6%.
That said, concerns about large-scale cyber events affecting multiple sectors simultaneously have raised questions about the industry's ability to absorb substantial losses without external support. Some industry leaders have advocated for public-private partnerships to address these potential systemic risks.
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