Businesses may find it more challenging to purchase or renew cyber liability insurance coverage, according to recent articles by Advisen¹, Reuters, and follow-up communications with Robert Parisi, managing director and National Cyber Risk Product Leader at Marsh. Brokers are warning that policyholders should expect sharp increases in premiums and deductibles, coupled with declining limits. Although cyber insurance coverage has been around for a number of years, about “75% of commercial entities still don’t buy the coverage,” according to Parisi. Marsh expects the cyber insurance market to continue growing faster than any other line of commercial insurance. Despite the overall growth, “some carriers have retreated from certain sectors” in the cyber insurance marketplace because the risks and costs associated with cyber attacks continue to be unpredictable for businesses and insurers alike. In part because of recent high-profile attacks, some cyber liability insurance carriers are less willing to take on certain risks, particularly in large health care and retail, or are simply charging as much as triple the premiums for renewals of coverage. Parisi noted that before issuing a policy, carriers may subject a policyholder to more intrusive underwriting – “asking a lot of questions” about the nature of a policyholder’s cyber defenses. Carriers may also in some cases require policyholders to undergo costly improvements, such as requiring retailers to invest in sophisticated encryption technology to protect payments from hackers. As the cyber insurance market continues to mature and evolve, policyholders should be aware and seek assistance when negotiating new or renewal cyber coverage to ensure they obtain the most comprehensive coverage available to fit their needs.


  1. Chad Hemenway, Hardening Market, Shifting Players Make Building A Cyber Insurance Tower Challenging, Advisen News (Oct. 12, 2015), available with subscription at