Willis forecasts big increases in premiums for cyber insurance

by Scott Kersgaard04 Nov 2015
In its recent report, Marketplace Realities 2016 Bringing the Pieces Together, Willis North America forecasts that while 10 lines may see premium decreases in the next year, 5 lines could see solid growth and another 6 lines are likely to be mixed.
Areas where Willis expects premium growth are:
  • Cyber
  • Employee Benefits
  • Errors & Omissions
  • Fidelity
  • Kidnap & Ransom
In Cyber, an area still getting settled, Matt Keeping, Willis NA chief broking officer and senior editor, writes that cyber “is an area of risk that is steadily becoming more of a standard consideration on the order of property and casualty. There is no escaping cyber exposure. Cyber also impacts errors & omissions, as breach incidents are often covered in part by E&O policies.”
Willis forecasts that cyber rates will increase about 15%, with the exception that POS (point of sale) retailers could see increases of up to 150% in the next year.
Willis forecasts employee benefits rates to increase by just under 10%. Errors & omissions, kidnap and ransom, and fidelity are expected to go up by about 5%. 
Areas that Willis expects to see either small gains or small reductions—or some of both—include:
  • Workers’ Compensation
  • Auto
  • Construction
  • Directors & Officers
  • Employment Practices Liability
  • Environmental
  • Fiduciary