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Cyber insurance is back from the brink after ransomware's onslaught

Price hikes are moderating, new carriers and fresh sources of capital are emerging and coverage is becoming more affordable.

By Max Reyes | March 08, 2023 at 01:37 AM
The total amount extorted from ransomware victims in 2022 dropped to $456.8 million from $765.6 million the year before, according to data from Chainalysis. (Credit: SergeyBitos/Adobe Stock) The total amount extorted from ransomware victims in 2022 dropped to $456.8 million from $765.6 million the year before, according to data from Chainalysis. (Credit: SergeyBitos/Adobe Stock)

(Bloomberg) — The cyber insurance market, battered by a rash of pandemic-era ransomware attacks, is making a comeback. Price hikes are moderating, new carriers and fresh sources of capital are emerging, and companies can better afford coverage.

Cyber insurance pricing increased 10% from a year earlier in January, a fraction of the 110% annual increase reported in the first quarter of 2022, preliminary data from insurance broker Marsh McLennan show. If those trends continue, prices could be set to decline, said Tom Reagan, Marsh’s cyber practice leader.

 

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