Cyber insurance market trends

If you are considering purchasing cybersecurity insurance to safeguard your business from the consequences of a ransomware or cyberattack, this market update is for you. Whether your goal is to protect confidential customer data or ensure the swift recovery of your business operations following a cyberattack, we have some information that can help you. 

Check out our video with Marsh Cyber insurance expert Jono Soo, who shares key highlights on the New Zealand Cyber insurance market, including:

• Premium impacts
• Coverage and underwriting trends
• Some challenging areas
• Market outlook

This insurance market update is part of a bigger report that we publish once a year, which covers a wide range of insurance types including liability, financial and professional lines of insurance and much more – if you’re interested in reading the full New Zealand insurance market 2023: Year in review, you can download it after the video and transcript.

Transcript

The demand for cyber insurance coverage and financial protection to respond to cyber incidents has been steadily rising in New Zealand. Businesses are becoming more aware of the implications associated with cyberattacks, such as financial loss and reputational damage.

Insurers are continuing to place a strong emphasis on robust cyber risk management procedures, evaluating an organisation's cybersecurity infrastructure, incident response plans, employee training programs, and data protection measures.

Premium trends

In 2023, cyber insurance pricing in New Zealand increases typically ranged from 5% to 10%. Rates have since stabilised, and in Q1 2024 rollover of rates at renewal was the norm.

Insurers, continued to scrutinise organizations’ cyber controls.

Coverage and underwriting trends

Insurers are particularly concerned about catastrophic risks, dynamic privacy regulations, and ransomware. They seek detailed risk information from clients, especially regarding their ability to mitigate ransomware threats.

As organisations enhance their cyber controls, the market has stabilised in areas such as pricing, deductibles, and terms and conditions.

Regulatory compliance is a key focus in the New Zealand market. Businesses are required to comply with the Privacy Act and notify affected individuals and the Office of the Privacy Commissioner in the event of a data breach. Insurers closely monitor local regulatory developments to ensure compliance.

Looking ahead

The New Zealand cyber insurance market is expected to experience steady growth, increased competition, and interest from international markets in 2024. Underwriters will continue to prioritise robust cyber risk management controls to meet the evolving needs of businesses in safeguarding against cyber risks.

Download report

For more insights on the New Zealand cyber market, or details on other insurance classes, download our full report today.

LCPA 24/342

Marsh Limited (NZBN 9429040918792, FSP 22364) (“Marsh”) arranges the insurance and is not the insurer.

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.