Senior living and care providers finally may have some good news on the cybersecurity front as cybersecurity premiums for companies nationwide may finally be leveling off after years of double-digit increases, a new report finds.
Willis Towers Watson’s new Insurance Marketplace Realities 2023 Spring Update evaluates a variety of potential liability risks facing different industries, including cyber risks.
The report predicted cyber premium renewal rates to be flat to the 10% range in 2023.
“Market stabilization is continuing in 2023,” report authors wrote. “This is largely due to fewer companies paying ransoms, a reduction in overall cyber claim activity, and improved controls by insureds. Competition from cyber underwriters is also driving down pricing as markets look to write new business and retain their renewals.”
The stabilization of cybersecurity premiums began in late 2022 and is expected to continue in 2023, according to the report, which was released last week. “While 2022 started with 50% to 150% increases, we are now regularly seeing flat increases or even decreases at renewal,” it said.
Highly regulated industries, such as healthcare and financial institutions, which are required to have more stringent cyber controls, have seen the most favorable renewals, the authors said.
Not all news was good, however, as ransomware and the potential for other malicious attacks still are major concerns. The cybersecurity firm Coveware found that although ransomware payments decreased by 51% in the second quarter of 2022 over the previous quarter, average and median ransomware payments increased again during the third and fourth quarters of the year.
And although senior living and other long-term care companies have noticed premium rate stabilization in some areas, the Willis Towers Report found that the aging services industry still is facing significant liability pressures in other areas, such as medical malpractice premiums, COVID-19 related claims and property damage claims caused by hurricanes and other recent severe weather events.
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