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Analysis

Small business cyber insurance premiums up 7% in 2021

The increase follows a period that saw rates fall year-on-year while cyber risks ratcheted up.

Along with the growing threat posed by cyber risks is an apparent growing awareness. In 2016, around 2.2 million cyber insurance policies were written, according to AdvisorSmith, which reported there were 3.6 million policies written in 2019. (Credit: ipopba/Adobe Stock) Along with the growing threat posed by cyber risks is an apparent growing awareness. In 2016, around 2.2 million cyber insurance policies were written, according to AdvisorSmith, which reported there were 3.6 million policies written in 2019. (Credit: ipopba/Adobe Stock)

Since the start of the year, cyber insurance rates have increased 7% for small businesses, according to AdvisorSmith Solutions, Inc., which estimated organizations of this size that are considered low-risk see average annual cyber insurance premiums of $1,589 for $1 million in coverage. For midsize and large businesses, those increases were closer to 20%.

Currently, carriers are attempting to realize multiyear corrections in a single year, according to Amwins, Inc., which projects continued premium growth into 2022. Unlike other hard insurance markets, however, cyber differs as capacity continues to be available, albeit with reduced availability of maximum capacity to individual accounts.

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Steve Hallo

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

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