In a series of predictions from CyberCube published this week, Pascal Millaire claimed cyber insurance has the potential to become one of the largest lines in the Property & Casualty (P&C) insurance industry in the decades to come. However, this will only occur if there is a deep partnership across the value chain with a cross-section of industry participants.
“The insurance industry will work together in many different ways to help power the evolution of the cyber insurance market toward a more mature level, and deliver better value for the end customer,” he said. “In the coming year, underwriters and brokers will come under greater pressure to concentrate on value-added tasks, rather than spend their time on manual data entry or low-value screening. The insurance community will also strengthen its ties with alternative capital providers to facilitate the growth of the ILS market.”
According to Millaire and other leading CyberCube experts, cyber offerings will continue to mature, as the insurance market transitions from P&C to Property, Casualty & Cyber (PC&C). The wide-ranging predictions touch upon where we are in the underwriting cycle, how Artificial Intelligence (AI) will increasingly be utilized, and the role of regulation and partnerships in the development of the cyber insurance market.
Admiral (ret.) Michael S. Rogers, former Director of the NSA and Commander of US Cyber Command who is on CyberCube’s board of directors, called on insurers to focus on how digitization can create supply chain issues in 2023. He said: “Our economic models and social structures are increasingly built around this idea of instantaneous connectivity that is never disrupted, which gives us bandwidth, connectivity, and stability. What will it mean if we continue to build this digitized world and yet its security and its capacity aren't always there?”
Other contributors to the report include board members Matthias Weber, Former Group Chief Underwriting Officer and member of the Group Executive Committee of Swiss Re, and Michael Millette, Managing Partner at Hudson Structured Capital Management Ltd.
CyberCube’s report is now available — Cyber Predictions 2023.
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