State of the Market

Caspar Stops, London Market Cyber Underwriter at Aviva, noted that the real growth opportunity lies in selling cyber coverage to existing clients who either don’t have it or are underinsured—without putting downward pressure on rates. However, Lindsey Nelson, Head of Cyber at CFC, cautioned that insurers can still “miss the mark” if they fail to tailor coverage to evolving client needs.

Michela Moro, Head of Cyber Insurance at Generali Global Corporate & Commercial, reinforced that cyber threats are constantly evolving, but there’s a “clear push” from insurers to ensure their products remain viable, interesting, and relevant—because, as she put it, that’s “absolutely essential to making the sale.”

The key takeaway? Staying competitive means understanding clients’ unique risks and offering coverage that evolves with the threat landscape.

Systemic Cyber Risk

Insurers have shifted their focus on large-scale, interconnected events that could lead to massive claims.

Predicting and pricing these risks isn’t easy, but the industry is making strides. Kelly Butler, Cyber Practice Leader at Marsh, emphasized: “We’re definitely not flying blind! There are a lot of smart brains thinking about this, aggregating data, and doing their best to map out what [a systemic cyber event] might look like.”

Insurers are running scenarios, analyzing real-life incidents like the CrowdStrike outage, and testing their portfolios against worst-case scenarios. Yet, despite these efforts, uncertainty remains. The big question: Is the market truly prepared for the next systemic event?

Moro acknowledged the challenge, pointing out how interconnected everything is: “Managing that exposure is huge.” Mapping IT supply chains—down to suppliers’ suppliers—is complex and will always involve some level of approximation.

My take on the opportunities for growth & innovation

Systemic cyber risk isn’t going away, and improvements to your traditional approach won’t always cut it.

Now is the time for insurers and brokers to rethink and develop a new approach to technology risks.

There’s still room for more innovation— especially when it comes to assessing these risks effectively.

Insurers need more data from real-world events to power scenarios that better reflect the exposures in their portfolios. The more relevant and precise the modeling, the better equipped the market will be to price, manage, and ultimately transfer systemic cyber risk.

For brokers, this is your chance to shine— expand coverage, bring new clients into the market, and enhance policy offerings.

Businesses need faster, more predictable financial recovery when digital disruptions hit. That’s where parametric solutions come in. By offering rapid, predefined payouts for specific digital disruptions—such as cloud downtime or IT service failures— businesses can recover faster, without the need for a complex claims processes.

Seizing the opportunity requires a shift in mindset, and those who embrace innovation will be the ones who thrive.