In its latest cyber report titled “Risk, Resilience and Relevance,” global insurance intermediary Howden underscores a resilient cyber insurance market amid challenging global conditions. Despite heightened cyber threats and geopolitical uncertainties, Howden notes a notable 15% reduction in insurance costs from their peak in 2022, offering favorable terms for prospective buyers. This decline follows a stabilizing trend since 2023, attributed largely to improved cyber hygiene practices among insureds, which have mitigated the impact of cyber attacks.
Sarah Neild, Head of Cyber Retail, UK at Howden, highlighted the unique market dynamics of 2024, where a robust insurance market coexists with an increasingly hostile cyber landscape. “The stability in pricing amidst ongoing threats and the proliferation of advanced technologies like Gen AI represents a pivotal moment for the cyber insurance sector,” Neild remarked. This stability forms a solid foundation for sustained profitability and innovation within the industry.
Looking ahead, Howden anticipates growth driven by international markets and a burgeoning interest from small and medium-sized enterprises (SMEs). The report projects significant premium expansion outside the U.S., with Europe, Latin America, and Asia identified as key growth regions. Jean Bayon de La Tour, Head of Cyber, International at Howden, stressed the importance of strengthening global resilience through expanded insurance coverage. “There is immense potential in underpenetrated regions, and we are committed to enhancing cyber resilience worldwide,” Bayon de La Tour stated.
As part of its strategic initiatives, Howden is focusing on innovative solutions tailored to SMEs, a segment historically underserved by cyber insurance. Shay Simkin, Global Head of Cyber at Howden, emphasized their proactive approach in unlocking this market potential. “Our new platform simplifies access to cyber insurance for SMEs, reflecting our commitment to driving growth through innovative, client-centric solutions,” Simkin affirmed. With resilience, relevance, and strategic expansion at its core, Howden remains poised to navigate and capitalize on the evolving cyber insurance landscape in the years ahead.
