always more expensive for less guarantees

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The Lu’Cy study was led by Philippe Cotelle, administrator of Amrae and president of its Cyber ​​commission, vice-president of Ferma and Risk Manager of Airbus Defense & Space.


Amrae has released the Lu’Cy 2022 study providing an update on the cyber-insurance market and company practices in this area.

AdvertisingDevelopments in the cyber-insurance market have been of concern to Amrae (Association for the Management of Business Risks and Insurance) for several years now. For the third consecutive year, the professional association of risk managers is publishing its study Lu’Cy (Lights on cyber-insurance). It is clear that the trends remain worrying as premiums increase and coverage decreases. “4.4% of groups [grandes entreprises] previously insured preferred to find other cyber risk coverage solutions”, regrets Philippe Cotelle, administrator of Amrae and president of its Cyber ​​commission, vice-president of Ferma and Risk Manager of Airbus Defense & Space, who piloted the study. Conversely, ETIs saw their coverage rate increase by 20.2% but remained very low at 9%. VSEs and SMEs are experiencing drops in coverage rates (respectively: -11% and -21.8%) but remain at a very low coverage rate of 0.2%. This coverage rate is common with micro-enterprises, which are experiencing growth of 32.6%. The loss ratio increases with the size of the company.

However, 82% of the market currently concerns large companies, 13% of ETIs, SMEs and VSEs sharing the remaining 5%. The main subject of concern is of course constituted by the paradox of the strong growth in the volume of premiums paid by all companies (+44.4%) while the capacity subscribed (risk coverage) fell by 32%. The average deductible listed in the contracts, an amount that will never be compensated regardless of the cost of the cyber-claim, reaches the staggering level of four million euros! While cyber-insurance had ceased to be a profitable niche for insurers a few years ago, its compensation rate on subscriptions is now 88% (compared to 190% in 2020 due to high claims) but this overall figure conceals a colossal disparity according to the size category of the companies (large companies: 58%; ETI: 261%; SME/VSE: 325%). The market should therefore continue to make adjustments even though the measures taken by insurers to restore their profitability have led to today’s worrying situation.

The study was carried out by Amrae based on a survey conducted in February-March 2022 with seven brokers specializing in corporate risk (AON, Diot-Siaci, Filhet Allard, Marsh, Verlingue, Verspieren, WTW) as well as Planète CSCA (the syndicate of insurance brokers) and the mutual insurance company SMA, the latter two providing a better view of the market for small and medium-sized enterprises. The study takes into account 2,028 insurance policies and 518 claims compensated in anonymous mode.

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