Cyber Insurance: Finally Catching Its Breath?
By Ben Abernathy – Three Arbor Insurance
A couple of years ago cyber insurance premiums were increasing, coverage was tightening, and underwriters had no excitement for anyone without military-grade cybersecurity.
Well, using data from those years we can see the cyber market is starting to soften.
What caused the high rates?
· Claims Were sever – Ransomware, phishing, and data breaches were costly and frequent. Insurers took big losses.
· Underwriting Got Intense – Multi-factor authentication, endpoint detection, encrypted backups. These became common conditions needed to be met to quote, not everyone had them.
· Capacity Got Tight – Fewer carriers, fewer options, higher premiums. Some clients saw increases of 100% or more, with less coverage.
What’s Changed?
· More Carriers Joined The Market – New and returning players = more competition. That’s good news for buyers.
· Pricing Has Leveled Off – Rates are stabilizing — especially for companies with solid cyber hygiene.
· Underwriting Is Still Thorough, But Not Panicking – They still want to see best practices, but the sky-is-falling mentality is gone.
What Can You Do to Take Advantage?
· Stay on Top of Your Cybersecurity – Basic controls still matter. MFA, backup protocols, employee training — all must-haves.
· Re-market Strategically – Don’t just accept last year’s premium. There’s room to shop, negotiate, and improve.
· Work With Someone Who Speaks Both Languages – Cyber insurance is a weird combo of tech and legalese. Having an advisor who can translate helps you get real protection — not just a stack of exclusions.
Bottom Line
Cyber insurance isn’t what it was — but it’s still a risk that’s evolving fast. If you’ve been scared off or stuck with a sky-high policy, it might be time for a second look.
We would be happy to help you make sense of it all. No buzzwords, no pressure — just smart advice and solid coverage.
