A new AM Best report has argued that prospects for the US cyber insurance market are “grim,” due to the significantly worsening risk hazard environment and issues such as ransomware, business interruption and aggregation.
Analysts noted that cyber insurance, which began as a diversifying secondary line, is now a primary component of a corporation’s risk management and insurance purchasing decisions.
Consequently, AM Best says that insurers urgently need to reassess all aspects of their cyber risk, including their appetite, risk controls, modeling, stress testing and pricing, to remain a viable long-term partner dealing with cyber risk.
