Cyberinsurance premiums have decreased by around 15% since peaking in 2022, according to a report from broker Howden. This decline is attributed to improved security measures implemented by companies, which has reduced insurance claims. However, experts suggest that the real reason for the decrease is the insurance industry’s correction due to its cyclical nature.
The insurance market tends to swing between profitable and unprofitable periods over time, known as a “hard” and “soft” market. Currently, the market is in a soft phase, with increased capacity and lower rates. This means that premiums are likely to remain low for now.
However, experts caution that this trend may not continue indefinitely. The next correction could see premiums increase again due to the inherent instability of the cyber market.