From: Captive International
Alex Clark and Claire Richardson from Hylant look at some of the challenges posed by the evolving cyber market.
Many business people are familiar with the ancient Chinese curse, “may you live in interesting times.” Interesting is indeed an apt description for the current cybersecurity environment. And with the astonishing rate of development fueled by artificial intelligence (AI), that environment is evolving faster than ever.
That is true for the technology – and every bit as true for the strategies and products companies use to indemnify their business risks related to cybersecurity.
Transitioning insurance market
Until recently, commercial insurance coverage for cybersecurity was what the industry calls a very hard market. Carriers were not only increasing premiums for the coverage they wrote, but were also instituting large increases in expected risk retention. Companies that lacked best-in-class cybersecurity controls discovered they might not be able to obtain the scope of coverage they desired or would be expected to pay elevated premiums. As last year ended, the market began to show signs of softening.
