Despite a surge in ransomware attacks, the cost of cyber insurance is stabilizing, according to a recent report from insurance firm Howden.
Howden’s annual report reveals a decline in insurance premiums over the past year, indicating that companies are becoming more effective at mitigating their cybercrime-related losses.
This stabilization follows a significant spike in cyber insurance premiums during the COVID-19 pandemic (2021-2022), which was driven by a rise in cyber incidents.
However, as firms have strengthened their security measures, such as implementing multifactor authentication (MFA), insurance claims have become less frequent, the report states.
“MFA is the most basic thing you can do; it’s like locking the door when you leave the house,” said Sarah Neild, head of UK cyber retail at Howden.
Neild also noted that the market is experiencing an unprecedented combination of increased attacks, heightened geopolitical instability, the proliferation of generative AI (GenAI), and decreasing cybersecurity costs.
“The foundations for a mature cyber market, with innovation and exposure-led growth at its core, are now in place,” she added.
The report attributes the price decreases to insurers’ growing willingness to offer cyber insurance.
“Cyber insurance is key to strengthening resilience around the world, and insurers are now in a strong position to bring about real change,” said Jean Bayon de La Tour, head of cyber, international, at Howden.
“This involves providing more capacity to meet pent-up demand in currently underpenetrated regions, including Europe, Latin America, and Asia,” Bayon de La Tour continued.
