Arctic Wolf Maps Cyber Insurance Landscape

The cyber insurance market in Europe is undergoing significant transformation, with organisations increasingly viewing cyber liability insurance as a critical component of their security strategy.
A recent survey by Arctic Wolf and CyberRisk Alliance reveals emerging trends that are reshaping how companies approach digital risk protection.
Evolving Landscape of Cyber Risk Management
Arctic Wolf's provides a detailed view of the current cyber insurance ecosystem.
CRA Business Intelligence surveyed 257 European cybersecurity, IT and business executives who work at companies that have over 50 employees.
The Cyber Insurance Outlook 2024 report for Europe, Middle East and Africa encompassed several industries, including financial services, retail, technology, manufacturing and healthcare.
By ensuring balanced representation across Ireland, the United Kingdom, Belgium, the Netherlands, Luxembourg and Germany, the survey methodology secures an illustrative view of the European market.
Security requirements driving policy decisions
The survey spotlights the evolution of requirements for cyber insurance policies, with managed detection and response (MDR) and multi-factor authentication (MFA) becoming more prominent.
When considering coverage, 51% of respondents required MFS and 49% wanted MDR, highlighting the increase in demand for sophisticated security controls.
Security information and event management (SIEM) and endpoint detection and response (EDR) also emerge as vital requirements (with both accounting for 45% of respondents).
An Irish survey respondent spotlights the complexity of the industry: "Different insurance providers use different terms and definitions, making assessment difficult.”
Policy Adoption and Market Dynamics
Amidst growing cybersecurity concerns, more organisations are embracing cybersecurity insurance policies to enhance their protection, with 34% of insured organisations having policies that are less than 12 months old.
62% of organisations have cyber insurance policies, with 69% of those opting for standalone coverage - insurance policy dedicated to cyber coverage.
However, this adoption of cyber insurance fluctuates significantly among industries.
The healthcare sector emerges as the leader in insurance coverage (69%), with financial services (68%) and high-tech (73%) following behind.
Industries such as retail (61%), manufacturing (57%) and business/professional services (51%) are spotlighted as the less regulated industries.
Premium Costs and Coverage Trends
As we continue to navigate the difficulties of inflation, the insurance market is also experiencing changes in premium rates.
53% of European respondents experience policy price increases in the last year, with 47% of these reporting an increase of 10% or less.
However, it is not just the price of cyber insurance policies that are experiencing change, as insurers are offering more comprehensive policies.
50% of respondents note more detailed coverage and 48% maintained consistent protection levels.
The debate between cyber insurance and warranties emerges as a key divide. 30% of organisations decided on warranty coverage as well as insurance, but 50% opted for warranties instead of comprehensive cyber insurance.
Post-Incident Implications and Organisational Response
As cyber threats and attacks increase, cyber insurance policies fail to update their implementations following cyber incidents.
29% of respondents have experienced a cyber incident in the past 12 months. As a result of this, 36% of organisations faced greater scrutiny and 42% saw premium increases.
To tackle the development of cyber threats, insurers are enhancing their expectations of organisations.
46% of organisations were required to develop new security awareness training programmes after an incident and 44% were requested by insurers to update their incident response plans.
Despite these difficulties, organisations continue to express their gratitude to their cyber insurance policy, with 37% of incidents seeing insurers mobilising their own investigation and response teams.
This same percentage of insurers were also able to recover some or all stolen internal data.
Future Outlook and Compliance Drivers
As the insurance industry navigates price fluctuations, technological advancements and rising cybersecurity threats, U.S. insurance brokers predict continuous market development.
51% predict more comprehensive coverage and 72% envisage a rise in claims filed throughout 2025.
Despite significant change, compliance remains a key motivation.
52% of U.S. insurers report that clients look for coverage to prevent the associated costs linked to legal penalties.
A U.S. insurance broker states: "We expect our cyber insurance coverage to become more comprehensive, emphasising stronger risk management practices and potentially higher premiums due to increased cyber threats.”
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