5 corporate cyber predictions for 2024

The latter half of 2023 saw downward pressure on pricing after several years of price increases caused by heightened ransomware activity. While cheaper premiums is a bonus for businesses, there’s also a strong desire for pricing stability—from insurers, brokers and end-users.

In 2024, we expect the claims environment to be sufficiently tough to offset sustained downward pressure on pricing, despite the level of capacity available in the market. This will help the market achieve a more stable equilibrium, which will benefit all parties in the long run.

Few signs suggest the cyber market’s current growth will halt, but reinsurers and capital markets need greater comfort around systemic risk modelling if they’re to supply the capacity to fuel continued growth.

As it stands, current capacity levels are enough for the majority of large corporates to source the limits they desire. As the cyber insurance market grows, we’ll see specialist markets continue to deploy large lines and meet this growing demand. At CFC, we’ve offered a traditional line of £25 million in the large corporate space for some years now, and will continue to provide the world’s biggest businesses with the cyber protection they need.

With cybercriminals always chasing greater profits, ransomware and cyber extortion will continue to be top cyber threats in the large corporate space—and a major source of cyber claims.

In 2024, we’ll also see increased regulatory scrutiny on data privacy, with governments across the globe introducing new privacy laws for businesses to abide by. In the US, the landscape is even more complex, with individual states creating rigorous privacy regimes. We’re likely to see an increase in third-party privacy liability claims, many of which will arise from the alleged misuse of biometric data and website tracking technology.

As cyber threats continue to evolve, innovation in the services that come with a good cyber policy will increase to provide the protection businesses require.

In 2024, expect insurers to focus on proactive risk management, key in helping to stop cyber incidents from happening and minimize impact when they do occur. At CFC, our threat intelligence alerts are already helping large corporate clients avoid cyber incidents altogether. It’s innovations like these that make cyber insurance one of the best investments any business can make.

In 2023, the focus on systemic risk grew stronger, with the market introducing the war exclusion, the market’s first cyber catastrophe bond and the Cyber Monitoring Center, which is designed to define and categorize systemic events.

Across 2024, systemic risk will remain a major concern for all cyber insurers. We’ll likely see further innovation in how it’s managed, as the market looks to more easily delineate between attritional claims and systemic risk events.