{"id":6197,"date":"2023-10-19T08:28:27","date_gmt":"2023-10-19T07:28:27","guid":{"rendered":"httpss:\/\/www.advantagego.com\/?p=6197"},"modified":"2025-04-08T07:46:52","modified_gmt":"2025-04-08T07:46:52","slug":"new-podcast-with-paul-bantick-global-head-of-cyber-risks-at-beazley","status":"publish","type":"post","link":"https:\/\/www.advantagego.com\/en-us\/content\/new-podcast-with-paul-bantick-global-head-of-cyber-risks-at-beazley\/","title":{"rendered":"Cyber market going from strength to strength \u2013 Beazley\u2019s Bantick"},"content":{"rendered":"\n<p><iframe title=\"Ep185 Paul Bantick, Global Head of Cyber Risk, Beazley: Providing for Cyber growth\" allowtransparency=\"true\" height=\"150\" width=\"100%\" style=\"border: none; min-width: min(100%, 430px);height:150px;\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=hi74a-14d2117-pb&amp;from=pb6admin&amp;share=0&amp;download=1&amp;rtl=0&amp;fonts=Tahoma&amp;skin=3267a3&amp;font-color=&amp;logo_link=episode_page&amp;btn-skin=1b1b1b\" loading=\"lazy\"><\/iframe><\/p>\n\n\n\n<p><strong>The latest episode of the Voice of Insurance podcast features Paul Bantick, Global Head of Cyber Risks at Beazley.<\/strong><\/p>\n\n\n\n<p>Despite an upsurge in ransomware attacks and the nervousness of reinsurers about wordings and systemic risk, the cyber insurance market goes from strength to strength. Rates have nearly tripled over the past three years, while the market\u2019s US-focused origins are being broadened as the whole world begins to consider cyber threats and intangible assets akin to physical risks in size and stature.<\/p>\n\n\n\n<p>London market carrier <a href=\"https:\/\/www.beazley.com\/en-001\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Beazley<\/a> has a special place in the cyber insurance market as the first insurer to offer standalone cyber breach protection, more than a decade ago, pioneering a new market that has since ballooned in premium terms. Paul Bantick, global head of cyber risks at Beazley, the latest guest of the Voice of Insurance podcast, has played a prominent role in leading cyber product innovation.<\/p>\n\n\n\n<p>As host Mark Geoghegan pointed out, Beazley\u2019s gross cyber income was already well over a billion dollars in 2022 and is still growing strongly into this year on the back of seemingly insatiable demand. That said, the market is at a crossroads, with rates adjusting down slightly after three years of hikes, while wordings for things like cyber war coverage have been clarified and tightened. How the cyber market continues to develop is very much in question.<\/p>\n\n\n\n<p>Bantick noted that many people have compared the cyber market to those for errors and omissions (E&amp;O) and directors\u2019 and officers\u2019 (D&amp;O) liability markets, both of which have a tail.<\/p>\n\n\n\n<p>\u201cAnd it\u2019s not \u2013 cyber is a short-term market. What we&#8217;re seeing more than ever, is that it&#8217;s starting to work and look and feel like a short-tail market looks,\u201d he said. \u201cYes, we saw some rapid hardening. Why? Because we saw a lot of claims, and we saw the threat landscape move, and ransomware became prolific, effectively overnight.\u201d<\/p>\n\n\n\n<p>The cyber market\u2019s price landscape is a rapid reflection of the claims environment, shifts in loss frequency and severity, which have come up and then down, as well as developments in resilience among clients and a changing risk landscape.<\/p>\n\n\n\n<p>2020-2022 were \u201can aggressive two years\u201d in terms of <a href=\"https:\/\/www.advantagego.com\/en-us\/content\/unveiling-cyber-war-exclusion-clause-in-the-lloyds-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">cyber insurance<\/a> pricing but also the underlying risk environment, he emphasised.<\/p>\n\n\n\n<p>\u201cWe understand that the price increases were hard for clients and brokers, but if you look at it over a four or five year period, you&#8217;ll see that cyber is now returning what we needed to return,\u201d said Bantick.<\/p>\n\n\n\n<p>Claims trends and pricing have both eased, allowing a softening of prices this year, while cyber insurers have maintained profitable combined ratios.<\/p>\n\n\n\n<p>\u201cFrequency and severity have come down a lot, which we were hoping for, and perhaps the rate was slightly over pushed a little bit over a two year period of increases. What you&#8217;re seeing right now\u2026is some of that rate being given back to clients, which is always what we said we would do, and to do the right thing,\u201d he added.<\/p>\n\n\n\n<p>However, he added a word of caution about signs of returning cyber claims activity. The market is \u201con a knife edge\u201d, Bantick warned.<\/p>\n\n\n\n<p>\u201cWhat we&#8217;ve heard from lots of others \u2013 not just in insurance but in the wider cyber ecosystem \u2013 is that frequency and severity are back. They are starting to go up again, and the ransomware attacks are back,\u201d he said.<\/p>\n\n\n\n<p>\u201cMany people hypothesised that would happen as the Russia-Ukraine War started. From a cyber standpoint, we always thought at some point that criminal activity would return. We&#8217;re in a market where you&#8217;ve got frequency and severity potentially coming up, and we&#8217;ve got prices coming off. We&#8217;ll see what the next quarter or two brings, and it\u2019s going to be quite interesting to watch,\u201d Bantick added.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest episode of the Voice of Insurance podcast features Paul Bantick, Global Head of Cyber Risks at Beazley. Despite an upsurge in ransomware attacks and the nervousness of reinsurers about wordings and systemic risk, the cyber insurance market goes from strength to strength. Rates have nearly tripled over the past three years, while the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6199,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[19,26],"tags":[14],"line-of-business":[24,28],"class_list":["post-6197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts","category-latest-insights","tag-underwriting-workbench","line-of-business-cyber","line-of-business-general-liability"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts\/6197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/comments?post=6197"}],"version-history":[{"count":0,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts\/6197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/media\/6199"}],"wp:attachment":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/media?parent=6197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/categories?post=6197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/tags?post=6197"},{"taxonomy":"line-of-business","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/line-of-business?post=6197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}