European businesses, rejoice! The cyber insurance market in Europe is undergoing a positive shift, according to Marsh, a leading insurance broker. Here’s what you need to know:
A Shift from Hard Market to Soft Market
Previously, the European cyber insurance market was a “hard market,” characterized by rising premiums, stricter coverage terms, and limited availability. This made it difficult for businesses to secure adequate cyber insurance protection. However, Marsh reports a welcome change. The market is softening, with signs of:
- Increased Capacity: More insurers are entering the market, offering more options and greater overall capacity for cyber insurance coverage.
- Reduced Premiums: After a period of significant increases, premiums are starting to stabilize or even decrease for some businesses.
- Relaxed Coverage Restrictions: Insurers are becoming more flexible with their coverage terms, making it easier to obtain the protection your business needs.
- Enhanced Coverages: New and innovative coverage options are emerging, allowing businesses to tailor their insurance to specific cyber threats.
What’s Driving the Change?
Several factors are contributing to this positive shift:
- Improved Cybersecurity Practices: Businesses are increasingly implementing stronger cybersecurity measures, making them less risky to insure.
- Greater Awareness of Cyber Threats: The rising number of cyberattacks has driven home the importance of cyber insurance, leading to higher demand.
- More Competition Among Insurers: With more insurers in the market, competition is driving better rates and more flexible coverage options.
Is Now the Time to Get Cyber Insurance?
With a softening market, now could be a great time for European businesses to explore cyber insurance options. Here are some key considerations:
- Evaluate Your Needs: Assess your company’s specific cyber risks and what type of coverage you require.
- Shop Around: Compare quotes from multiple insurers to find the best combination of coverage and price.
- Maintain Strong Cybersecurity: Remember, even with insurance, robust cybersecurity practices are essential to minimize your risk of a cyberattack.
