Marsh has unveiled Cyber Echo Encore, an enhancement to its existing Cyber Echo insurance facility. This expansion allows clients to access an additional $45 million in cyber insurance capacity.
The coverage is underwritten by London market insurers outside Lloyd’s. This broadening of the underwriting base provides policyholders with more options while maintaining the streamlined process of the original Cyber Echo facility. Launched in 2016, the original Cyber Echo facility offers cyber insurance coverage up to $125 million and is considered the largest of its kind. Since its inception, Cyber Echo has facilitated nearly $50 billion in coverage for approximately 500 clients globally.
Marsh emphasizes that Cyber Echo Encore extends the reach of Cyber Echo beyond the Lloyd’s market. Key features such as simplified underwriting, placement, and claims handling remain. Moreover, the ability to reinstate coverage within the same underwriting year following a loss is preserved.
Serena France-Hayhurst, UK cyber placement leader at Marsh, noted the evolving cyber threat landscape. She pointed out that businesses are increasingly seeking standalone cyber insurance solutions that align with their changing risk profiles.
Recent market data reveals a period of stabilization following rapid growth. The cyber insurance market experienced a modest 2% contraction in 2023. This suggests the market is maturing with capacity still relatively sufficient to meet demand. The stabilization continued into 2024, with flat or slightly declining cyber insurance rates. In the third quarter of 2024, global commercial insurance rates saw a 1% decrease, the first quarterly decline in seven years. Cyber insurance rates specifically decreased by 6% during that period.
Concerns persist regarding large-scale cyber events that could affect multiple sectors simultaneously. These events raise questions about the industry’s ability to absorb substantial losses without external support. Some industry leaders are advocating for public-private partnerships to address these potential systemic risks.
