Premiums increased for the 17th consecutive quarter in Q4 2021, with respondents reporting an average premium increase across all account sizes of 8.7%.
Prices increased for all lines of business, including Workers’ Compensation. Cyber had yet another record increase in Q4 2021, at 34.3%—the first time since the post-9/11 hard market where a line of business had an increase of over 30%.
Respondents pointed to an increased frequency and severity of Cyber claims, as well as the difficulty of quantifying cyber risk, as a reason for the significant increases.
Much stricter underwriting requirements for Cyber business remained a theme in Q4 2021, with several respondents noting carriers wouldn’t “entertain new business or renewal applications without MFA [multifactor authentication] in place” and, depending on the account, would require other risk mitigation practices, such as “EDR [endpoint detection and response], adequate backups and segmentation, or employee phishing training.”
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