- Insurers cut cyber insurance rates for high-risk businesses during the first quarter of 2016, insurance industry brokers said yesterday according to a Reuters report.
- Insurance broker Marsh, a unit of Marsh & McLennan Cos Inc., said the average price companies in high-risk industries—like retailers and healthcare companies—paid for $1 million in cyber insurance coverage fell 13%.
- In 2015, the average premiums rose 28% after a rash of cyberattacks plagued the industries, with high profile incidents hitting Home Depot, Target and Anthem, for example.
Cybersecurity insurance is one of the fastest-growing sectors in the insurance industry. A report last year from PwC forecast that the global cybersecurity insurance market will hit $7.5 billion in annual sales by 2020, up from $2.5 billion in 2015.
A lack of recent major breaches may be contributing to the lower prices. Those high profile breaches resulted in huge payouts from insurer—$90 million for Target's breach-related costs and $100 million for Home Depot.
But, according to one insurance executive, "pricing has stabilized," according to the report, though prices can vary from industry to industry.