Open Access

Frank Cremer

• In today’s networked world, the threat of cyber risk is ubiquitous. The unpredictable and far-reaching effects it presents pose a considerable threat to the international economy and society. In the insurance sector, primary insurers often have difficulty obtaining sufficient capacity for these risks. Approx. 50% of global cyber premiums flow into the reinsurance market, according to a report by Gallagher Re (cf. Newman, 2022). According to various industry sources and statements, cyber risks are often passed on to reinsurers in the form of proportional reinsurance. Cyber underwriting is still in its early stages; hence, it is unclear what risks cyber insurers face and the dimensions such claims can take present (cf. Pache, 2024). If a reduction in capacity were to occur, this would result in stricter underwriting, often accompanied by shortened insurance cover, higher requirements for security measures and larger deductibles. Consequently, policyholders and SMEs in particular would have to pay significantly higher premiums; in the worst case, they might fail to meet the criteria for cover and hence lose that cover (cf. Skeoch & Ioannidis, 2024).