Significant Drop in Cyber-Insurance Premiums Makes Coverage More Affordable

Over the last year, a steady decline in premium rates has made cyber-insurance coverage more accessible and affordable for organizations of all sizes.

The primary driver behind this decrease is the increasingly competitive marketplace, with more insurance companies offering coverage for cybersecurity incidents such as ransomware attacks and data breaches. Additionally, improved cyber hygiene among insured organizations has contributed to the lower rates, according to a recent report from London-based Howden Insurance.

Howden’s report highlighted a 15% reduction in average cyber-insurance premium rates in 2023 compared to the previous year. This decline follows a two-year period from December 2020 to December 2022 when rates surged due to a significant increase in ransomware-related claims.

Sarah Neild, head of cyber retail, UK, at Howden, stated, “Favorable dynamics have persisted into 2024, with the cost of cyber insurance continuing to fall despite ongoing attacks, heightened geopolitical instability, and the proliferation of GenAI. At no other point has the market experienced the current mix of conditions: a heightened threat landscape combined with a stable insurance market underpinned by robust risk controls.”

Howden’s findings are echoed by US-based Aon, which reported a 17% decline in premium rates in 2023 compared to 2022. Aon also antic

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