Seven leading cyber insurers launch new risk mitigation company
In response to the continued rise in global cyber risks, seven of the world’s leading cyber insurers have joined forces to form a new consortium dedicated to enhancing cyber risk mitigation efforts across the insurance industry. Dubbed CyberAcuView, the new cyber risk mitigation initiative is sponsored by AIG, AXIS, Beazley, Chubb, The Hartford, Liberty Mutual Insurance and Travelers.
According to the company’s mission statement, via the combined expertise of these seven cyber insurer members, CyberAcuView will be used to compile and analyze cyber-related data to enhance value and service to policyholders and help ensure a competitive market for cyber insurance. In particular, these efforts will include:
- Providing industry best-practices to improve resilience to cyber risk;
- Proactively engaging with regulators, law enforcement and other security agencies to counter cybercrime and the rapid rise of ransomware;
- Developing systemic risk solutions and advancing cyber policy language to improve market efficiencies; and
- Analyzing cyber trends to provide enhanced visibility on cyberattacks and the causes of loss so that insurers can identify critical controls and educate policyholders on loss prevention strategies.
CyberAcuView is 100%-owned by the founding members, all of which are major participants in the global cyber insurance market. According to the company website, however, the new company is working with other leading direct writers of cyber insurance and going forward will invite additional insurers to participate as associate members in order “to promote even greater industry unity in addressing cybercrime and developing cybersecurity best practices.”
Company names former AIG Head of Cyber as CEO
In addition to announcing the new collaborative, a new CEO and leadership team also were named. Mark Camillo, most recently Head of Cyber, EMEA at AIG, will head up the firm as CEO. Monica Lindeen, former Insurance Commissioner for the State of Montana and past President of the National Association of Insurance Commissioners (NAIC), as Director of Regulatory Affairs; and James Schweitzer, a long-time veteran of the FBI and former COO of the National Insurance Crime Bureau (NICB), as Director of Law Enforcement Engagement will round out the leadership team.
“The cyber landscape continues to evolve with coordinated attacks becoming more frequent and disruptive,” said Camillo. “Combining resources from across the insurance industry will allow us to better understand cyber trends, anticipate and potentially mitigate future attacks, and help improve overall cyber resilience.”
A response to the growing rise in cyber incidents
Based on the latest data from the NAIC, the overall cybersecurity insurance marketplace wrote approximately $3.6 billion in Direct Written Premiums in 2019; a 14.54% increase over 2018 data. The total Admitted Market for cybersecurity insurance coverage was about $2.03 billion and included both standalone and package policy coverage. The NAIC’s notes that this amount represents a 6.81% increase over 2017 numbers.
Standalone cyber insurers reported to the NAIC about $1.11 billion in Direct Written Premiums, while those selling cyber insurance as part of a package policy reported $915 million in premium. According to the latest NAIC report, there are approximately 500 insurers currently providing both businesses and individuals with cyber insurance. Approximately 96% of those insurers offering cybersecurity insurance do so as part of a package policy.
According to data compiled in the recent U.S. Government Accountability Office’s (GAO) Report on Cyber Insurance, clients’ “take-up” rate, meaning the proportion of insurance clients opting for cyber coverage, rose from 26% in 2016 to 47% in 2020. This closely mirrors the rising costs of cyberattacks which almost doubled for U.S. insurers during the same time period.
Moreover, the unpredictability of a cyberattack and the lack of uniformed terminology to define cyber incidents are just a few more of the challenges facing this growing marketplace. As a result, CyberAcuView appears to be taking a proactive response to the uncertain future ahead in the cyber insurance marketplace.
The following is a list of the top individual insurers for Standalone Cyber Insurance Products in the U.S.
The Top Individual Insurers For Standalone Cyber in the U.S.
| RANK | NAIC# | COMPANY NAME | DIRECT WRITTEN PREMIUM | MARKET SHARE | LOSS RATIO | CUMULATIVE MARKET SHARE |
|---|---|---|---|---|---|---|
| 1. | 968 | AXA INS GRP | 255,874,528 | 23.0% | 57.2% | 23.0% |
| 2. | 12 | AMERICAN INTL GRP | 232,312,591 | 20.9% | 36.1% | 43.8% |
| 3. | 3548 | TRAVELERS GRP | 112,920,719 | 10.1% | 27.7% | 54.0% |
| 4. | 37540 | BEAZLEY INS CO INC | 100,860,728 | 9.1% | 6.1% | 63.0% |
| 5. | 212 | ZURICH INS GRP | 43,315,425 | 3.9% | 18.2% | 66.9% |
| 6. | 23 | BCS INS GRP | 39,534,843 | 3.5% | 13.5% | 70.5% |
| 7. | 158 | FAIRFAX FIN GRP | 38,145,472 | 3.4% | 23.4% | 73.9% |
| 8. | 3098 | TOKIO MARINE HOLDINGS INC GRP | 34,858,640 | 3.1% | 38.2% | 77.0% |
| 9. | 111 | LIBERTY MUT GRP | 33,427,580 | 3.0% | 43.6% | 80.0% |
| 10. | 218 | CNA INS GRP | 25,032,362 | 2.2% | 13.7% | 82.3% |
| 11. | 4698 | ASPEN INS HOLDING GRP | 21,073,367 | 1.9% | 61.6% | 84.2% |
| 12. | 3416 | AXIS CAPITAL GRP | 19,592,044 | 1.8% | 1.6% | 85.9% |
| 13. | 785 | MARKEL CORP GRP | 16,542,650 | 1.5% | 60.2% | 87.4% |
| 14. | 4904 | INTACT FINANCIAL GRP | 13,439,331 | 1.2% | 53.2% | 88.6% |
| 15. | 501 | ALLEGHANY GRP | 11,101,174 | 1.0% | 12.1% | 89.6% |
| 16. | 4666 | HISCOX INS GRP | 10,595,387 | 1.0% | 26.8% | 90.6% |
| 17. | 98 | WR BERKLEY CORP GRP | 10,176,206 | 0.9% | 20.4% | 91.5% |
| 18. | 31 | BERKSHIRE HATHAWAY GRP | 10,069,160 | 0.9% | 82.7% | 92.4% |
| 19. | 761 | ALLIANZ INS GRP | 9,743,451 | 0.9% | .03% | 93.2% |
| 20. | 783 | RLI INS GRP | 8,843,152 | 0.8% | 4.9% | 94.0% |
For those interested in more information about the Cyber Insurance Industry, please refer to our latest Market Share Report on the Top U.S Cyber Insurers:
2020 NAIC Market Share Report | The Top Cyber Insurers In The U.S.
