CS-7 - Cyber Insurance: What Risk Managers Need to Know

Cyber Insurance has become one of the fastest growing lines of business. Rates are high, capacity is constrained, and cyber defenses are being scrutinized more than ever before, owing to the unpredictable nature of cyber threats and their potentially devastating financial and reputational impact.

This session will focus on the supply and demand dynamics of cyber risk and insurance and an analysis of the trends in premiums and losses over the past five years. We will examine emerging issues in cyber policies, the rise of adversarial AI techniques and ChatGPT, the potential for silent cyber and aggregation risks, and how insurers are dealing with ransomware threats. We highlight some recent cases involving insurers that highlight importance of clarity about the coverage offered.

This discussion will be based on the research detailed in AM Best's Forthcoming report on the cyber market based on 2022 reported results and prospects for 2023.