LONDON, UK. October 12th, 2023 - KYND Limited, a leader in cyber risk management, today announced the results of the Cyber Insurance Survey 2023. Developed in collaboration with Intelligent Insurer, a premier publication serving the global insurance and reinsurance markets, this new survey was designed to provide firsthand insights into the future of the market’s development and latest innovation trends.
To gain a deeper insight into the current challenges and opportunities within the cyber insurance market, KYND and Intelligent Insurer surveyed over 200 insurers and brokers. The results show that despite 89% of all survey respondents acknowledging the rapid evolution of cyber, over half of respondents deemed the current state of the market unsustainable. Among the biggest challenges facing insurers, respondents overwhelmingly cited systemic risk, market education, adapting to evolving cyber threats, limited capacity, ransomware, and the need for ongoing risk monitoring.
The study underscores the vital role of having access to real-time risk intel and cyber expertise for all parties of the cyber insurance chain. With an overwhelming 81% finding insureds' cyber defence tools unsatisfactory despite the mounting cyber threat, 50% of insurance specialists consider risk mitigation measures such as basic cyber hygiene, employee education, and vulnerability assessments being critical risk mitigation measures for boosting policyholders’ cyber resilience. As for insurers, 40% believe that real-time data feeds for underwriting are key to enhancing cyber insurance profitability. These results highlight the urgent need for better collaboration and information sharing between insurers, brokers, and insureds to strengthen cyber resilience across the cyber insurance ecosystem.
Melanie Hayes, KYND’s COO and Co-Founder, commented: “The cyber insurance market today faces a range of challenges – from ever-evolving digital threats to heightened client expectations, keeping pace with ever-evolving cyber risks and addressing increased regulatory demands. All of these factors place the sector under extreme pressure to devise innovative ways of delivering exceptional products and services. The findings from this survey underscore how swiftly cyber risk intelligence and technology have become critical elements in aiding the insurance industry in its battle against these challenges and preparing for the future. Supporting the world’s most prominent insurance partners globally in navigating this complex landscape with the help of advanced cyber analytics and risk modelling, at KYND we wholeheartedly align with this sentiment.”