Risk analytics firm CyberCube anticipates a significant shift in the reinsurance industry’s approach to cyber insurance in 2024, with more reinsurers set to enter the market.
CyberCube CEO Pascal Millaire shared insights suggesting that traditional reinsurance companies, which have previously been reticent to engage in the cyber insurance market, are poised to start offering substantial cyber capacity. This change is driven by the rapid growth of cyber insurance as a key line of insurance.
“As reinsurers look at traditional lines of insurance being transformed by internet-connected risk, as well as the opportunity to participate in a rich new line of insurance, those reinsurers who were hesitant to dip their toe in the waters of cyber will increasingly see the imperative to do so,” Millaire said.
CyberCube’s report, which includes a range of predictions for the industry, foresees further development in the insurance-linked securities (ILS) sector, aiming to create a sustainable and dynamic market. Another expectation is the increased frequency of cyberattacks, spurred by the proliferation of artificial intelligence (AI).
In response, the insurance industry is anticipated to forge closer ties with small and medium-sized enterprises (SMEs) to better address their unique needs. The report also predicts a collaborative effort between insurers and the public sector to bolster societal resilience against major cyber events.
For the broking sector, CyberCube suggests that companies that establish a comprehensive cyber strategy will be well-positioned for success in 2024.
Adding to the perspective, Admiral (ret.) Michael S. Rogers, former director of the NSA, and Commander of US Cyber Command, who also serves on CyberCube’s board of directors, highlighted a shift in cyberattackers’ focus.
“With the SME market becoming increasingly targeted, the insurance industry will need to work with companies even closer to create a more robust cyber risk mitigation strategy across the board,” Rogers said.
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