What: A recent market report shows how cyber is continuing to pose problems for the insurance industry. Cyber coverage premiums have increased by more than 25% for five consecutive quarters, resulting in insurers raising deductibles and increasing underwriting scrutiny. The average increase for all P&C lines in Q2 was 7.1%.
Why it matters: It is interesting to watch product innovation in action. The normal product lifecycle identifies a new explosive growth opportunity, then it tries to price it, and finally tries to underwrite it. As is often the case, the first attempt has errors and needs to be adjusted, which is the case with cyber. The solution is to either improve the product and risk mitigation or increase pricing, both of which are happening right now.
Read: COMMERCIAL PROPERTY/ CASUALTY MARKET INDEX