This report evaluates loss trends, pricing trends and structural changes in the global E&O and cyber insurance market and provides recommendations to support successful insurance transactions. It also looks at captives and the part they can play in the cyber risk conversation.
Over the past two years, cyber risks have evolved across many fronts. Threat actors are using new, strategic tactics every day. The attack surface has expanded as employees continue to work from home, and supply chain-related attacks perpetuate growing systemic risk concerns.
It is no surprise that in Aon’s 2021 Global Risk Management Survey, participants around the globe rated the risk of cyberattacks/data breaches as the number one threat facing companies today.
The sheer number of cyber attacks on corporations has increased dramatically over the past few years. For example, ransomware attacks grew significantly— up 323 percent from Q1 2019 to Q4 2021. Meanwhile, we saw an average of two new errors and omissions (E&O) and cyber matters per day in 2021.
As we emerge from the pandemic, the hope is that the worst is behind us, but insurers are still in recovery mode. The E&O and cyber marketplace should brace itself for potential further challenges in 2022.