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You'll know that the cyber and tech market has been under a lot of pressure in the past six months, mainly due to the increase in size and frequency of ransomware losses. Unfortunately, this has resulted in changes to underwriters’ appetite and capacity.


The problem

As well as the inevitable increases in premiums and retentions, underwriters are also scrutinising the risks much more diligently and it is now becoming more difficult to place any new or renewal business in London that doesn’t have Multi Factor Authorisation (MFA). Unfortunately, commissions are also under intense scrutiny and are being summarily reduced.

  • These changes do not appear to be unique to the London market.
  • As a result of these factors in play across global markets, our underwriters are now inundated with submissions.
  • As they only have a finite amount of premium income, they are being very selective about what they will write.
  • Some have stopped writing new business entirely in order to conserve their premium income for their renewal book. 

 

How we can help

Despite all these changes, there are still opportunities in this current market place and we're well positioned to help. Our team is growing fast in terms of increased revenue and new staff members - with the new hire of Oche Ojabo we now have five specialists dedicated to Cyber, Tech and Media placements.

 

Here are just some of the main changes in appetite:

 

    AIG
    • Sub-limiting and co-insuring ransomware coverage on a case by case basis 
    MS Amlin
    • Pulled out of the Cyber market
    Ascent
    • Lost their lead market when MS Amlin pulled out and have had to accept many restrictions in order to get their binder renewed
    • Can no longer consider any risks with more than US $1bn in revenues
    • Can now only offer lines of US $3m in respect of Cyber and US $2m limit in respect of Tech risks
    • Excluding Ransomware on excess placements
    • No longer writing: education, charities, government entities, payment processors, utilities, energy, hospitals and pharmaceuticals
    Aspen
    • Now only targeting organisations with over US$ 1bn in revenues
    AXA XL
    • No longer considering Primary US risks 
    Beazley
    • Large increases across their book
    Canopius
    • Very little appetite for any business with less than US$ 25m attachment
    CNA
    • Sub-limiting and co-insuring ransomware coverage on a case by case basis
    EmergIn Risks
    • Not currently writing any new business
    Globe
    • Reducing commission
    Hamilton
    • No longer writing any new tech business
    • Minimum rate of US $20k per million for NEW business
    • No longer considering: Airlines, education, municipalities, telecoms, logistics, infrastructure, energy and payment processors
    HDI
    • No longer considering open market risks
    Hiscox
    • Can only consider risks with US $1bn+ in revenue
    • Not targeting risks with a lower attachment point than US $50m
    Munich Re
    • Not currently writing any new business
    Nirvana
    • Reducing commissions and also limits on most business
    Node
    • No longer considering Tech E&O risks  
    Occam
    • Pulled out of the Cyber market and now in run-off
    Ptarmigan
    • Line has been cut from US$10m to US$5m on several classes of business. No municipalities.
    SCOR
    • No longer considering Primary risks 
    Tarian
    • No longer writing much primary business
    WRB
    • Minimum US $10m attachment point

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