Airmic Cyber-Insurance Survey Finds Concerns, Captive Consideration

Cyber insurance with woman in white shirt and various digital icons

October 12, 2021 |

Cyber insurance with woman in white shirt and various digital icons

A recent Pulse Survey of cyber-insurance market conditions conducted by Airmic, the UK risk management association, found respondents saying that cyber risks are the most likely new risk to be financed with captive insurance.

The Airmic survey also found that, among commercial insurance buyers, there is a perception that the cyber-insurance market is still developing, with 53 percent of respondents indicating they purchase cyber insurance, while 47 percent do not.

Of Airmic members surveyed who purchase cyber insurance and have had a claim, all claims were related to ransomware attacks, and all of those claims have been paid.

Survey respondents were generally happy with the claims experience, with 74 percent rating the experience "very satisfactory," though only 13 percent said they had made a claim in the past 12 months.

The survey showed concerns about whether the cyber-insurance market has sufficient data, skills, and knowledge to effectively underwrite the risk, however, according to Airmic.

Survey respondents also expressed concern about how the cyber-insurance market will respond if there is ever a systemic cyber event, an Airmic statement said.

Some 69 percent of survey respondents indicated that their organization has at least one captive insurance company. Only 17 percent whose organizations didn't have a captive indicated they were considering forming one, Airmic found.

October 12, 2021