US companies are driving significant market growth for cyber insurance and cybersecurity companies, according the to NAIC’s 2019 Cybersecurity Supplement Report. The report lists the 10 biggest groups in the standalone and package cyber insurance markets.
For any companies that store financial, personal health, or other client data, a comprehensive cyber insurance plan is a must. And, as over 500 insurers now provide this type of insurance, it’s important to get to know more about the different groups when shopping around.
Learn More: Listen to our IB Talk podcast on understanding cyber risk and the insurance market
Standalone cyber insurance market
Insurers writing standalone cyber insurance products reported $1.11 billion in direct written premiums spread among 46 groups of insurers (140 individual insurers). The top 10 insurers wrote 82.3% of the total US market.
1. AXA
Direct Written Premiums: $255.9 million
Market Share: 23.0%
AXA is a multinational insurance and asset management company that operates in 62 countries. AXA XL, the company’s specialty risk division, provides insurance for more than 30 lines of business, including cyber. In October 2018, AXA XL launched a cyber policy explicitly designed for small- and medium-sized businesses in the US, powered by Slice’s Insurance Cloud Services platform.
2. AIG
Direct Written Premiums: $232.3 million
Market Share: 20.9%
American International Group (AIG) is a global insurance company that operates in 80 countries and jurisdictions. AIG’s cyber insurance can be written through a standalone CyberEdge policy or endorsed on to select financial lines, property and casualty policies.
3. Travelers
Direct Written Premiums: $112.9 million
Market Share: 10.1%
Travelers operates in the US, UK, Canada, and Ireland. It offers cyber insurance coverage for multiple industries and businesses, especially for technology companies and public entities.
4. Beazley
Direct Written Premiums: $100.9 million
Market Share: 9.1%
Beazley is a specialist insurer with clients across North America, Asia, and Europe. The organization is a participant in the Lloyd’s market. It’s well known for its cyber breach and network security products.
5. Zurich
Direct Written Premiums: $43.3 million
Market Share: 3.9%
Zurich is a global multi-line insurer that services customers in both global and local markets. Zurich’s cyber insurance policy offers a convenient, unified solution with coverages and features that can be customized to meet the specialized needs of mid-sized and large corporate customers.
6. BCS
Direct Written Premiums: $39.5 million
Market Share: 3.5%
BCS is licensed in 50 states and provides a total of 18 lines of business solutions through its companies and agencies nationwide. Its cyber insurance product protects businesses with up to $100 million in revenue.
7. Fairfax
Direct Written Premiums: $38.1 million
Market Share: 3.4%=
Fairfax, through its subsidiaries, has an international insurance and reinsurance business that has a global underwriting reach with longstanding relationships and a broad product range.
8. Tokio Marine
Direct Written Premiums: $34.9 million
Market Share: 3.1%
Tokio Marine Group is a multinational insurance company with headquarters in Tokyo, Japan, operating in 45 countries and regions worldwide. In the cyber insurance space, Tokio Marine stands out for its claims handling and underwriting experience, as well as its relationships with brokers.
9. Liberty Mutual
Direct Written Premiums: $33.4 million
Market Share: 3.0%
A global insurer, Liberty Mutual offers a wide range of property and casualty insurance products and services to meet the needs of individuals, families, and businesses through a group of entities owned by its parent company, LMHC, that are spread out in 17 countries across the world.
10. CNA
Direct Written Premiums: $25 million
Market Share: 2.2%
Headquartered in Chicago, CNA has offices throughout the US, Canada, and Europe. It offers a suite of cyber liability insurance products and risk control resources for businesses of all sizes, built on nearly two decades of cyber insurance expertise.
Package cyber insurance market
Insurers writing cyber insurance as part of a package policy reported roughly $915 million in premium writings. The top 10 insurers represent 71.8% of the market.
1. Chubb
Direct Written Premiums: $320.7 million
Market Share: 35.7%
Chubb is a leading commercial lines insurer in the US and the largest financial lines writer globally. The company has operations in 54 countries and territories. Chubb recently expanded its partnership with password manager Dashlane to get its complimentary cyber services to even more clients outside of North America.
2. CNA
Direct Written Premiums: $58.3 million
Market Share: 6.5%
As one of the largest US commercial property and casualty insurers, CNA provides insurance solutions to more than one million businesses and professionals worldwide.
3. AXIS Capital
Direct Written Premiums: $56.4 million
Market Share: 6.3%
AXIS Capital Holdings delivers specialty insurance and reinsurance solutions to clients around the world through its insurance subsidiaries. The company’s expertise in specialty insurance includes accident and health, casualty, cyber, environmental, management liability, professional liability, property, and program business.
4. Hartford
Direct Written Premiums: $39.7 million
Market Share: 4.4%
The Hartford is a leader in property and casualty insurance, group benefits, and mutual funds. The company sells its products primarily through a network of independent agents and brokers. Its cyber liability and data breach insurance coverages are stand-alone policies but can be added to existing business owner’s and general liability policies from the company.
5. Sompo
Direct Written Premiums: $34.1 million
Market Share: 3.8%
Sompo International, a global specialty provider of property and casualty insurance and reinsurance, was established in March 2017 as a result of the acquisition of Endurance Specialty by Sompo. In terms of cyber insurance, the company offers insureds comprehensive first and third party liability coverage that is highly coordinated with risk mitigation and breach response services.
6. Travelers
Direct Written Premiums: $33.3 million
Market Share: 3.7%
Travelers takes on the risk and provides the coverage clients need to protect the things that are important to them — their home, car, valuables, and business.
7. Liberty Mutual
Direct Written Premiums: $33.1 million
Market Share: 3.7%
For organizations, Liberty Mutual’s business insurance solutions include a variety of commercial coverages, from property and casualty to employee benefits and specialty lines.
8. BCS
Direct Written Premiums: $30 million
Market Share: 3.3%
BCS offers a wide range of products that are grouped into four categories: ancillary income solutions, specialty risk solutions, large claim solutions, and financial service solutions.
9. Argo
Direct Written Premiums: $20.6 million
Market Share: 2.3%
Argo Group is a Bermuda-based international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Cyber offers a full spectrum of coverage solutions related to professional and technology services.
10. Berkshire Hathaway
Direct Written Premiums: $18.6 million
Market Share: 2.1%
Berkshire Hathaway Inc. is a multinational conglomerate holding company run by Warren Buffett. The Omaha-domiciled company owns more than 60 subsidiaries, including leading insurer GEICO, battery maker Duracell, and food giant Kraft Heinz.
Want to learn more about the issues shaping the cyber insurance market in the US? Make sure you sign-up for our new - and completely free - virtual event, Broker Connect taking place on June 09.
