The cyber insurance market enjoyed another strong year in 2024, despite concerns around mini catastrophe events and pricing continuing to soften.

Threat actors will successfully breach a major “business critical” vendor in 2025, according to executives at insurtech Resilience, who also project that cyber criminals will succeed in executing a “deep fake” attack on a major firm in the year ahead.

The US cyber insurance sector is now in a soft market period after premium rate changes dropped below zero in 2024, according to Tokio Marine HCC’s 2024 Cyber Market Report.

The cyber insurance market will see price decreases in the single digits, there will be increased attention on supply chain risks and physical threats from attackers “will likely only get more aggressive”, insurtech Coalition has forecast in its 2025 predictions.

Traditional insurance frameworks are ill-equipped to address the risks posed by the rapid growth of bitcoin and the broader cryptocurrency market, according to Thomas Shewchuck, head of underwriting at Evertas, a specialist crypto insurer.

Envelop Risk has secured a three year extension to its capacity agreement with MS Reinsurance as the cyber-focused firm confirms it has reached $1bn in premium since its 2018 launch.

Security software and service providers Arctic Wolf and BlackBerry Limited have entered into a definitive agreement in which Arctic Wolf will acquire BlackBerry’s Cylance endpoint security assets for $160mn in cash.

The US Department of Health and Human Services (HHS), through its Office for Civil Rights (OCR), has proposed an update the 1996 HIPAA Security Rule to bolster cybersecurity protections in the healthcare system and address modern cyber threats.

The soft market in the US cyber insurance market will persist but may be tempered by emerging geopolitical tensions, expects Amwins, which also said that recent high-profile incidents have only had a “somewhat muted” impact.

Annual cyber insurance premiums are likely to increase by 15 to 20 percent per year to around $23bn by the end of 2026, according to S&P Global Ratings 2025 cyber insurance market outlook.

Cyber insurtech Resilience has hired Maria Long as deputy CUO, Scott Schleicher as senior vice president of underwriting, Megan Koffer as vice president of underwriting in the Southwest and Janine Cooper as assistant vice president of underwriting in the Midwest, Cyber Risk Insurer can reveal.

Cyber risks will intensify next year, according to Moody’s Ratings, which expects carriers’ loss ratios for this line to worsen as a result.

Cyber remains the fastest-growing class of business at Lloyd’s, with loss development no longer classing the line as short tail, according to senior Corporation executives.

Texas-based information security assurance provider HITRUST has announced the launch of a cyber insurance consortium in collaboration with Lloyd's of London.

Specialist insurer CFC has continued the expansion of its dedicated cyber team in Australia with the appointment of Michael Lewis as cyber development manager.

Fewer insureds have confidence in the ability of cyber insurance to cover the cost of an attack as compared to last year, a Cyber Insurance Outlook 2024 survey from Arctic Wolf found.

San Diego-based endpoint detection and response company Cybereason has bolstered its incident response team with four hires – Michael Quinn, Roy Cazares, Denman Powers and Michael Flicek – all joining from Kroll.

Nationwide has named James Walsh head of E-Risk Services, its wholesale distribution subsidiary for private company specialty lines underwriting.

Less than half (45 percent) of leaders at large and mid-sized UK businesses believe their cyber insurance cover is effective in reducing losses in the event of cyber incident, a new study by Resilience has found.

Former Coalition executive Madison Mooney has joined Tokio Marine HCC – cyber & professional lines group (CPLG) as director of business development.

Amwins has acquired Bellevue, Washington-based MGA Superior Underwriters in a deal that bolsters its capabilities in the Pacific Northwest.

The delegated underwriting authority sector will end 2024 reflecting on a year in which it again saw a host of start-ups and bore witness to some major M&A deals, with little to suggest its recent run of growth will come to a halt.

The Insurer - More capacity is poised to enter the renewable energy insurance market in 2025 as carriers look to gain a greater share of the expanding industry, with clients set to benefit from lower deductibles and broader terms alongside reduced rates, according to Nardac Insurance Services.

Bermuda-based holding company Maiden Holdings has entered into a combination agreement with Kestrel Group to form a new publicly listed specialty program group.

UK MGA Alps has appointed Michelle O’Reilly as managing director, replacing the long-serving Ian Micklewright who is departing after more than 20 years with the business.

Redline Underwriting has secured capacity support from Allianz Commercial’s UK arm to begin underwriting general aviation coverage for small and medium-sized insureds based in the Latin America and Caribbean regions.

Amynta Group has bolstered its capabilities in the credit insurance market after it acquired Crum & Forster (C&F)'s credit division.

Lockton Re has launched a segment dedicated to programs and MGAs in the US, under the leadership of Jeff Fleming.

Ryan Specialty has appointed former AIG executive Shawn Yingling as chief retail distribution officer within its specialty underwriting segment, Ryan Specialty Underwriting Managers (RSUM).

Energy-focused start-up MGA Volt Underwriting has signed a new $37.5mn binding authority for US and international onshore power and renewable energy risks, marking a 50 percent capacity increase for 2025.

Crescent Specialty has secured Lloyd’s coverholder status after the marine and energy-focused MGA was sponsored by capacity provider Canopius Group.

Jencap’s MiniCo Insurance Agency has secured capacity from an AM Best A- rated carrier for a new lawyers professional liability (LPL) program that will be offered on both an admitted and non-admitted basis.

Platinum Specialty Underwriters has acquired management and professional liability-focused MGA start-up Atri Insurance Services in a deal first revealed by Program Manager in November.

Tangram Insurance Services has brought a new security guard industry-focused program to market that will provide specialty liability and workers’ compensation coverage backed by capacity from Accelerant and Service Insurance Companies.

Ryan Specialty-owned Alive Risk’s sports, leisure and entertainment capabilities have been bolstered by the addition of contingency and non-appearance-focused MGU Paradiso Risks to its portfolio.

Aviation-focused Itasca MGA – part of the Fidelis Partnership’s Pine Walk platform – has structured an innovative aircraft non-payment credit insurance policy.

Transportation program administrator and wholesale broker Avant has hired Jim Arnold from Markel as COO and named Jenn Creamer as CUO.

Specialty MGA Rokstone has strengthened its direct and facultative property team with the appointment of Henry Hogarth as senior underwriter.

BP Marsh-backed transactional risk MGA Devonshire Underwriting has continued its build-out with the hire of Kate Nolan as a tax associate, effective immediately.

Players Health, a Minneapolis-based provider of athlete safety and sports insurance solutions, has closed a $60mn Series C funding round that brings its total funding up to more than $100mn.

Twelve months ago in E&S Insurer’s 2023 review, we highlighted another bumper year for the sector, but cautioned signs of slowing momentum.

Wholesaler CRC Group has bought SLB Insurance Group in its first acquisition since its parent TIH was spun off from Truist and former sister company McGriff was sold to Marsh, E&S Insurer can reveal.

Amwins has acquired Bellevue, Washington-based MGA Superior Underwriters in a deal that bolsters its capabilities in the Pacific Northwest.

KBW’s Meyer Shields has provided a “largely positive” outlook for specialty and standard commercial insurers, reflecting the historical pattern of peak commercial underwriting margins coming several years after peak pricing increases.

New US casualty market entrants are leading to rate stabilisation in excess of $10mn, while the London market is “becoming a bit more aggressive” than domestic carriers, according to Risk Placement Services.

US insurance brokerage M&A transactions had reached 633 by the end of November, up 2.5 percent on the same period of 2023 and dominated by private capital-backed buyers, with activity expected to end the year strongly, according to boutique investment banking firm MarshBerry.

Dallas-based E&S provider AM Specialty Insurance Group has hired Stephen Mathews as its group chief financial officer.

Despite heightened competition in property and minimal impact from late hurricane season activity, the overall growth outlook for the E&S market remains strong, largely driven by healthy submission flow, especially in casualty.

Wholesaler CRC Group has hired Michael Schmitt, Sean McPhillips, Bailey Cadden, and Blake Rios as brokers across its US offices.

Old Republic International Corporation announced on Friday that its board of directors has declared a special dividend of $2.00 per share, which will return around $500mn of capital to shareholders on 15 January 2025.

Risk Placement Services (RPS) launched an excess casualty sidecar earlier this year which offers a $5mn line on State National paper supported by a quartet of at least A- rated reinsurers, E&S Insurer can reveal.

Emerald Bay Risk Solutions founding CEO Dave Ingrey has stepped down from the role and is expected to take on a board position while head of business development Ken Ingrey is leaving the Bain Capital-backed fronting carrier, Program Manager can reveal.

Bridge Specialty Group, the wholesale broking division of Brown & Brown, has acquired the assets of Madison, Wisconsin-based specialty wholesale environmental insurance brokerage platform American Risk Management Resources Network.

The inevitable soft market will make it more challenging for E&S carriers to maintain profitability, but the trend toward increasing specialisation, customisation and risk segmentation means that the level of premiums in the segment is likely to drop off by less than in past cycles, according to Conning.

Bermuda-based MGA Helix has officially unveiled its new Greg Butler-led US platform with the launch of a US commercial property excess facility offering $10mn of limit per risk on A+ XV E&S paper.

Amwins Group has named Ben Sloop as president effective 1 January 2025, succeeding James Drinkwater, who will transition to vice chair of the wholesale giant while also remaining executive chairman of Amwins Global Risks.

Nationwide has named James Walsh head of E-Risk Services, its wholesale distribution subsidiary for private company specialty lines underwriting.

US primary casualty rate increases will hit double digits in 2025 as they catch up to excess rate adjustments, while London is “poised to become a more visible player” in US casualty, Amwins has said.

Allied World’s decision to maintain a dual distribution model rather than launching a dedicated wholesale unit has not been an impediment to growth, with the carrier’s E&S book expanding significantly in recent years to account for more than half of its US premium.

Wholesale broker Burns & Wilcox has said the “gradual and consistent shift” in business from the admitted to the E&S market is a trend that is here to stay, as it also highlighted growing US liability concerns going into 2025.

At the beginning of 2024 Sustainable Insurer outlined five key themes for the year ahead, centred around the adaptation and resilience agenda and the increasing complexity of ESG regulations.

Specialty (re)insurer Canopius has named Olivia Brindle head of sustainability, effective immediately.

Allianz has been targeted in a protest action on Thursday which saw the German carrier's London offices covered in red paint.

Aviva, Axis and Munich Re are the only major (re)insurers that write more direct premiums for renewable energy than fossil fuel infrastructure, according to a new report by Insure Our Future, which slammed industry-wide underwriting of fossil fuels as “economically dubious”.

Generali, Allianz and Zurich have topped the 2024 scorecard by Insure Our Future for implementing the most comprehensive fossil fuel underwriting restrictions across 30 global (re)insurers.

Zurich Resilience Solutions, the commercial risk advisory unit of Zurich Insurance Group, has formed an alliance with GoImpact Capital Partners aimed at enabling businesses in Asia Pacific to address the challenges of climate change.

Insurers are not giving sufficient consideration to nature-related risks across their entire underwriting portfolios, according to a new guide by the UN Principles for Sustainable Insurance initiative.

The increasing prominence of wind and solar power is exposing energy companies to more weather-related risks, which they are looking to transfer.

The World Bank has disclosed that it is working with four eastern Caribbean states to boost climate resilience through three risk transfer mechanisms: a catastrophe swap, cat bonds and additional parametric insurance.

Australian insurers have welcomed an inquiry by the Senate Select Committee into the impact of climate risk on the affordability and availability of insurance.

A disorderly net-zero transition could impact European insurers’ investment returns by up to 13 percent in the short term, a new report by Ortec Finance has said, while failure to transition altogether would slash real estate and equity portfolio returns by more than half.

Carriers are increasingly embracing risks and exposures associated with battery energy storage systems (BESS), including the development of a revenue protection product, as underwriting loss data for other renewable technologies matures.

Zurich’s Alison Martin has called for greater trust from regulators in the ability of insurers to understand the risks on their own balance sheets, while also warning that greater policy intervention is needed to ensure that the industry does not become “the climate change police”.

Davies Group – including its captive management business, MGA/broker incubation platform and Lloyd’s third-party managing agent Asta – will be focused on rolling out a new culture strategy and beginning to tackle supply chain emissions in 2025 under its new office of responsible business.

Axa XL has provided $30mn in credit insurance cover as part of a new sovereign debt conversion project in The Bahamas, which is forecast to generate $124mn in marine conservation funds over the next 15 years.

With COP29 having concluded at the weekend, Sustainable Insurer reflects on the discussions that took place over the past two weeks in Baku and the burgeoning role of (re)insurance in the global dialogue on climate.

As the Convex Seascape Survey published its second annual update, head of sustainability Rachel Delhaise spoke to Sustainable Insurer to explain how greater understanding of the value of blue carbon will enable more capital flows.

Sustainable Insurer spoke to Howden’s Daniel Fairweather about the important role insurers can play in helping realise the value of nature-based assets.

The role P&C insurance companies play in supporting economic and social development can help underpin sustainability strategies, according to Tokio Marine’s Mika Nabeshima.

Digital platforms and agency-based distribution models will be key to overcoming insurance inclusion gaps, a new concept proposed by the Geneva Association referring to socio-economic groups that are excluded from or underserved by insurance markets in advanced economies.