In 2024, more reinsurers will enter the cyber market – CyberCube



In 2024, more reinsurers will enter the cyber market – CyberCube | Insurance Business America















The frequency of cyber attacks is expected to increase due to artificial intelligence

Security

According to
Kenneth Araullo

Risk analytics company CyberCube expects a significant shift in the reinsurance approach to cyber insurance in 2024, as more reinsurers enter the market.

CyberCube CEO Pascal Millaire shared insights that suggest traditional insurers, previously reticent to enter the cyber insurance market, are poised to begin offering significant cyber capacity. This change is driven by the rapid growth of cyber insurance as a key insurance.

“As reinsurers look at traditional types of insurance transformed by Internet risk, as well as the opportunity to participate in a rich new line of insurance, those reinsurers who have been hesitant to dive into cyber waters will increasingly see the need to do so,” said Millaire.

CyberCube’s report, which includes a number of industry predictions, foresees further developments in the insurance-linked securities (ILS) sector to create a sustainable and dynamic market. Another expectation is the increased frequency of cyber attacks, triggered by the spread of artificial intelligence (AI).

In response, the insurance industry is expected to forge closer ties with small and medium-sized enterprises (SMEs) to better respond to their unique needs. The report also predicts joint efforts between insurers and the public sector to strengthen society’s resilience to major cyber events.

For the brokerage sector, CyberCube suggests that companies that implement a comprehensive cyber strategy will be well positioned for success in 2024.

Admiral (retired) Michael S. Rogers, former director of the NSA and commander of US Cyber ​​​​Command, who also serves on CyberCube’s board of directors, highlighted the shift in the focus of cyber attackers.

“As the SMB market becomes increasingly focused, the insurance industry will need to work even more closely with companies to develop a more robust strategy to mitigate cyber risk across the board,” said Rogers.

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