As cyber insurance rates have begun to stabilize, insurance carriers are seeking more diversification to fuel their underwriting and growth strategies, according to panelists at this year’s PLUS Cyber Symposium in New York City.
“They’re seeking diversification in the standard ways we know of — writing across multiple industries, size segments and geography — but also more nuanced diversification by really looking at what technology dependencies are large exposures for their portfolios,” said Crystal Boch, U.S. head of cyber analytics at Aon Re. “So more carriers are investing in different scanning capabilities and different tools that really identify those technology aggregation points across the portfolio.”
Crystal Boch
She pointed to August 2024 research from Parametrix and Aon on diversifying cloud outage risk as one example. The research paper, titled Diversifying Cloud Risk, showed how losses arising from cloud outage events can be diversified within large reinsurance portfolios.
“You can see from that if you spread your portfolio across geography, it greatly reduces