Q1 Cyber Market Update

Property & Casualty

Q1 Cyber Market Update

Market Conditions

The stabilization of the cyber market is contending with a steady uptick in ransomware attacks and incidents. This has led to current renewals trending from -5% to +5% changes in premium for companies with improved controls. Companies that have yet to demonstrate year-over-year improvements to IT security controls, or those with recent incidents, are more susceptible to further increases.


Cyberattacks increased in frequency throughout 2023. Ransomware negotiator, Coveware, notes the percentage of companies paying a ransom demand has decreased considerably over the past year. However, when ransoms are paid, the amount being paid has notably increased.

Ransomware Attacks*



Premium & Retention

  • Anticipate 5% increases/decreases for entities maturing their IT security controls and possible increases for insureds with recent losses or less than fully mature IT security
  • Pressure on carriers to reduce Increased Limit Factors (ILFs) has slowed in response to the decreases felt by excess insurers in 2023
  • Significant opportunity for competition on rate and considerable savings from 2022 for those with best-in-class controls
  • Retentions continue to be driven by revenue and industry


  • Carriers are offering expanded capacity in the U.S. and London, fostering competition on programs with quality controls
  • Some markets have increased their available lines, and there are new entrants into the cyber market


  • Potential increase to sub-limited coverages and added enhancements
  • Pixel tracking has the focus of underwriters. Coverage may be excluded if appropriate governance is not demonstrated by insureds
  • War exclusions continue to be revised by carriers
  • Wrongful collection of information, biometrics and cyber-crime coverages remain limited

*2023 Sonicwall Threat Report

Premium Range estimates assume no major exposure changes and/or adverse claims activity year-over-year.

Cyber Team