{"id":10567,"date":"2024-08-28T08:37:20","date_gmt":"2024-08-28T13:37:20","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&#038;p=10567"},"modified":"2024-08-28T08:37:20","modified_gmt":"2024-08-28T13:37:20","slug":"cyber-liability-q4-2024-market-update","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/cyber-liability-q4-2024-market-update\/","title":{"rendered":"Cyber Liability | Q4 2024 Market Update"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row row_style=&#8221;page-hero&#8221; full_width=&#8221;stretch_row_content&#8221;][vc_column]\n\t<div class=\"hero hero--wrap    \">\n\n\t\t<div class=\"hero--background-image hero--background-image-blur\">\n\t\t\t<div class=\"hero--overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"hero-background\" style=\"background: url(https:\/\/www.bbrown.com\/wp-content\/uploads\/2024\/08\/Cyber-Q4_2024-Market-Update-Brown-Brown-External_web-image.jpg) center center no-repeat; background-size: cover;\"><\/div>\n\t\t\t\t\t<\/div>\n\n\t\t<div class=\"hero--container\">\n\t\t\t<div class=\"container\">\n\t\t\t\t<div class=\"hero--inner width-100\">\n\n\t\t\t\t\t\n  <div class='content-heading  100%  '>\n    <p class='text-white subheading'>Property &amp; Casualty<\/p>\n    <h1 class='text-white    '>\n      Cyber Liability | Q4 2024 Market Update\n    <\/h1>\n\t\n  <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;2\/3&#8243;]\n  <div class='content-heading  100% content-heading--ruled '>\n    \n    <h1 class='text-brand-dark-blue    h2'>\n      Cyber Liability | Q4 2024 Market Update\n    <\/h1>\n\t\n  <\/div>[vc_column_text]The Cyber market remains stable, with continued predictions for hardened conditions and increased rates later this year. Competition is expected to remain steady, limiting short-term market impacts. Incumbent markets seek to retain business with leading controls and add to their portfolios for opportunities of best-in-class risks.<\/p>\n<ul>\n<li>Changing cyber market conditions over 2024 will put pressure on pricing. Renewals are projected to change -5% to +5%.<\/li>\n<li>A soft market for the past 18+ months has resulted in market pressure to make corrections, likely starting in late 2024 into 2025.<\/li>\n<li>Additional capacity from incumbent markets and new entrants has countered the pressure to increase rates, but these dynamics seem to be fading.<\/li>\n<li>While pockets of competition remain, markets are managing limit deployment and continue to seek out best-in-class risks with strong cybersecurity posture and thorough diligence practices.<\/li>\n<li>Persistent rate of claims in both frequency and severity:\n<ul>\n<li>This year exemplifies how companies can sustain persistent and severe cyberattacks in the form of ransomware, malware, business email compromise and social engineering.<\/li>\n<li>Companies paying ransom demands have decreased from a high of 77% in 2020 to an all-time low of 28% in 2024. However, when ransoms are paid, the business interruption losses can be significant and the extortion payments are higher than previous averages.<\/li>\n<li>The July 2024 CrowdStrike outage brought Cyber carriers\u2019 aggregation risk concerns into focus but ultimately had no significant impacts on carrier books.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Areas of Underwriter Concern<\/h3>\n<ul>\n<li><strong>Aggregation risk from outsourced software\/managed service providers<\/strong> (e.g., MOVEit, Change Healthcare, CrowdStrike)\n<ul>\n<li>Underwriter focus centered on vendor contracts provisions, vendor diligence, policies surrounding contingency and recovery plans including testing and patching procedures.<\/li>\n<li>Contingent business interruption limit availability continues to be subject to negotiation.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Artificial Intelligence (AI) usage and management<\/strong>\n<ul>\n<li>Carriers will inquire about thoughtful deployment and thorough policies\/procedures.<\/li>\n<li>Some carriers providing \u201caffirmative\u201d AI endorsements.<\/li>\n<li>NIST AI Framework: <a href=\"https:\/\/www.nist.gov\/itl\/ai-risk-management-framework\" target=\"_blank\" rel=\"noopener\">AI Risk Management Framework | NIST<\/a><\/li>\n<\/ul>\n<\/li>\n<li><strong>Biometrics:<\/strong> unique physical characteristics including fingerprints, DNA, faceprints, retina scans, etc.)\n<ul>\n<li>Coverage may be excluded without appropriate compliance standards surrounding consent, collection and storage practices under relevant laws (BIPA, GDPR, etc.)<\/li>\n<li>GDPR Compliance Guidance: <a href=\"https:\/\/ico.org.uk\/for-organisations\/uk-gdpr-guidance-and-resources\/lawful-basis\/biometric-data-guidance-biometric-recognition\/how-do-we-demonstrate-our-compliance-with-our-data-protection-obligations\/\" target=\"_blank\" rel=\"noopener\">How do we demonstrate our compliance with our data protection obligations? | ICO<\/a><\/li>\n<\/ul>\n<\/li>\n<li><strong>Pixel tracking:<\/strong> code embedded in a website that tracks and gathers data on the user\u2019s website activity\n<ul>\n<li>Coverage may be excluded if appropriate governance is not demonstrated.<\/li>\n<li>FTC &amp; OCR Guidance: <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/FTC-OCR-Letter-Third-Party-Trackers-07-20-2023.pdf\" target=\"_blank\" rel=\"noopener\">Model Letter: Use of Online Tracking Technologies (ftc.gov).<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>[\/vc_column_text]\t<div class='wpb_content_element text-left btn-container'>\n\t\t\t\t\t<a class='btn btn-brand-green  '\n\t\t\t\thref='https:\/\/www.bbrown.com\/wp-content\/uploads\/2024\/08\/Cyber-Q4_2024-Market-Update-Brown-Brown-External_web-1.pdf' target='_blank' data-toggle=''>\n\t\t\t\t<span class=\"btn-text-color--default\">Download PDF<\/span>\n\t\t\t<\/a>\n\t\t\t<\/div>\n[\/vc_column][vc_column width=&#8221;1\/3&#8243;][vc_single_image image=&#8221;1021&#8243; alignment=&#8221;center&#8221;][vc_separator border_width=&#8221;2&#8243; el_width=&#8221;60&#8243;][vc_column_text]<\/p>\n<h6 style=\"text-align: center;\">Property &amp; Casualty Team<\/h6>\n<p>[\/vc_column_text]\t<div class='wpb_content_element text-center btn-container'>\n\t\t\t\t\t<a class='btn btn-brand-dark-blue  '\n\t\t\t\thref='\/us\/contact\/contact-general\/' target='' data-toggle=''>\n\t\t\t\t<span class=\"btn-text-color--default\">Connect Now<\/span>\n\t\t\t<\/a>\n\t\t\t<\/div>\n[\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row row_style=&#8221;page-hero&#8221; full_width=&#8221;stretch_row_content&#8221;][vc_column][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;2\/3&#8243;][vc_column_text]The Cyber market remains stable, with continued predictions for hardened conditions and increased rates later this year. Competition is expected to remain steady, limiting short-term market impacts. [&hellip;]<\/p>\n","protected":false},"author":66,"featured_media":10568,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"insight_category":[34],"class_list":["post-10567","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight_category-property-casualty"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cyber Liability | Q4 2024 Market Update - Brown &amp; Brown<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bbrown.com\/us\/insight\/cyber-liability-q4-2024-market-update\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cyber Liability | Q4 2024 Market Update\" \/>\n<meta property=\"og:description\" content=\"[vc_row row_style=&#8221;page-hero&#8221; full_width=&#8221;stretch_row_content&#8221;][vc_column][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;2\/3&#8243;][vc_column_text]The Cyber market remains stable, with continued predictions for hardened conditions and increased rates later this year. Competition is expected to remain steady, limiting short-term market impacts. 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