KYND Limited, a leading player in cyber risk management, has released the findings of its 2023 Cyber Insurance Survey conducted in collaboration with Intelligent Insurer, a prominent publication serving the global insurance and reinsurance sectors. This comprehensive survey aimed to offer firsthand insights into the future development and the latest innovation trends within the market.
The survey, which gathered responses from over 200 insurers and brokers, sheds light on the current challenges and opportunities in the cyber insurance landscape. Notably, 89% of respondents acknowledged the rapid evolution of cyber risks. However, over half of those surveyed considered the current state of the market as unsustainable. Among the prominent challenges facing insurers, respondents highlighted systemic risk, the need for market education, adapting to evolving cyber threats, limited capacity, ransomware concerns, and the necessity for ongoing risk monitoring.
The study emphasises the crucial role of real-time risk intelligence and cyber expertise across all segments of the cyber insurance chain. A significant 81% of respondents found insureds’ cyber defence tools to be unsatisfactory in the face of mounting cyber threats. Half of the insurance specialists identified risk mitigation measures such as basic cyber hygiene, employee education, and vulnerability assessments as critical for enhancing policyholders’ cyber resilience. For insurers, 40% believe that real-time data feeds for underwriting are key to improving the profitability of cyber insurance.
These findings underscore the urgent need for enhanced collaboration and information sharing among insurers, brokers, and insureds to bolster cyber resilience within the cyber insurance ecosystem.
Melanie Hayes, COO and Co-Founder of KYND, commented on the survey’s results, stating, “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.”
For access to the complete report, please visit here. To learn more about KYND’s advanced cyber risk management technology and services, visit https://www.kynd.io/.
