NEW YORK, March 24 – Purchases of cyberinsurance by customers of insurance brokerage Marsh has increased 27% since last year, according to a report published by the broker last week. Manufacturing and technology companies are among the largest sectors of buyers of the coverage, according to the report.
Marsh attributes the growth in demand to simple evolution: “In the face of an evolving risk landscape and an aggressive regulatory environment, organizations no longer treat cyber as a problem to be fixed, but rather as a risk to be managed,” the report says.
There is now developing a demand for cyberinsurance coverage among infrastructure industries like healthcare and transportation insured, Marsh reports. And new coverages for cyber losses are evolving to cover losses such as business interruption and disruption of control systems by service providers, such as power companies.
Coverage limits are increasing with the demand for such coverage, Marsh reports. The current average limit of coverage in 2015 was $16.9 million in 2015, up from $14.7 million in 2014, the brokerage said. The highest average business sector limit was in the technology/communication sector, at $86.7 million, according to the report.
Marsh also reported that no new major insurers entered the cyberinsurance market during the last quarter of 2015, but that this is likely to change going forward.