Our Cyber Risks team delivered IWP of $1,184.3m, (2022: $1,157.8m). The rating spike experienced in the previous two years stabilised and with increased stability competition entered, particularly in the US market, which led to our growth predominantly coming from a strong performance by our international business, particularly in Europe.
Our market leading Cyber insurance offering projects businesses against cyber threats by building resilience and minimising risk. Beazley is a pioneer in cyber insurance and has led the way in the development of an effective cyber ecosystem which protects clients, before, during and after a cyber incident and in the creation of the market's first cyber catastrophe bond."
2023 was also the moment when the market began to mature and address the challenges of systemic cyber risk, namely the possibility that a single cyber event or incident might trigger widespread failures and harmful impacts across multiple entities, sectors, or countries. We took a leading position in this with the robust approach we have championed, thus succeeding in bringing much needed clarity to the existing war exclusions. As we enter 2024, we are seeing broad market consensus.
The innovations Cyber Risks has made over the last 12 months in the development of cyber catastrophe bonds and in addressing systemic or catastrophic cyber risk, have been made possible by the team’s ongoing work on modelling cyber risk. We shared our approach to modelling catastrophic cyber with the market during 2023, detailing our move to a probabilistic modelling framework which is underpinned by third party data and our own models to give greater insight into cyber catastrophe scenarios.
Demand-led growth
Looking forward there is growing business demand for cyber insurance and we are pleased to see that the insurance and capital markets are responding by providing the additional capacity the market needs to reach its potential. In particular we see an opportunity to grow among businesses with revenues below $250m, where our expertise and experience of managing cyber risk adds real value to their operations.
Risk selection
Ransomware has not gone away and while we have not seen any significant uptick in our book at the point of reporting, there is evidence in other parts of the market that it is increasing in frequency. We believe we will be able to navigate an upswing given both the improvements we made in the risk selection of our book and the investment we continue to make into threat assessment and risk mitigation strategies.
Our market leading Cyber insurance offering projects businesses against cyber threats by building resilience and minimising risk. Beazley is a pioneer in cyber insurance and has led the way in the development of an effective cyber ecosystem which protects clients, before, during and after a cyber incident and in the creation of the market's first cyber catastrophe bond."
