Surplus Lines Cyber Growth Keeps Up with Demand
The increase in demand for cyber liability protection demonstrates the significance of the surplus lines insurance market. Surplus lines insurers have evolved over the years to meet the needs of consumers, and the industry is in a position to continue growing and moving forward into the future.
From a national level, the amount of cyber insurance premium for the property and casualty industry in the United States grew by 35 percent in 2016 to $1.35 billion, according to a report by Fitch Ratings. Fitch said that this number may be an underestimation due to difficulties singling out cyber information from other coverages in some policies.
Among cyber insurers, the top 15 writers were responsible for around 83 percent of the market in 2016, with more than 130 total insurers writing cyber policies during the year. The largest writers of cyber coverage were American International Group, Inc., XL Group Ltd, and Chubb Limited.
This growth is consistent in Texas, as cyber policies have been increasing in the surplus lines market over the past few years, as well. The Surplus Lines Stamping Office of Texas (SLTX) recorded a 412 percent total increase in cyber premium over the past five (5) years in Texas. In 2016, $66 million in cyber liability was written in Texas, which is a 35 percent increase from $49 million in 2015. Year-to-date, $33.5 million in premium has been recorded in 2017, and SLTX projects end-of-year totals could meet $70.6 million.