The U.S. cyber insurance market is likely to experience hardening conditions in 2024, with higher underwriting standards and increasing rates due to the escalating threat of cyberattacks, according to a survey by cyber risk management provider KYND Ltd.

The survey, conducted in collaboration with Intelligent Insurer, involved over 100 brokers and insurers who shared their insights on U.S. cyber insurance trends.

The majority, 64%, agreed that the cyber insurance market will harden over the next 12 months, while 57% also expect cyber underwriting standards to rise. A significant 80% predict that cyber risks will increase over the next year, with 31% anticipating a significant surge.

“It’s therefore never been more important for businesses to make sure their digital assets are safeguarded from an evolving landscape of cyber threats, through cyber risk management and mitigation strategies,” KYND stated.

Ransomware threats were identified as the most potentially financially damaging, according to 46% of respondents. Other notable cyber threats included supply chain attacks (17%) and data breaches (14%).

The survey also highlighted the challenges facing insurers in assessing a client’s cyber risk. The top three issues were the lack of accurate, real-time cyber exposure insight (35%), clients not being transparent about their cybersecurity practices (21%), and accurately estimating systemic loss through modeling (21%).

The most critical factors for assessing an organization’s cyber posture were endpoint detection and response (29%), cybersecurity awareness (26%), and identity access management (14%).

However, the biggest challenge in getting insureds to adopt stronger cyber risk management practices was the lack of perceived risk and lack of budget, each cited by 37% of respondents. Lack of expertise was the third most significant challenge, at 26%.

“By leveraging cutting-edge cyber risk management technology and more concrete, data-driven insights, insurers can more effectively assess and manage cyber risk across their portfolio of businesses as they navigate the evolving cyber landscape,” KYND stated.

The full survey results can be accessed on the KYND website. &

The post U.S. Cyber Insurance Market to Harden in 2024: Survey appeared first on Risk & Insurance.

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