Heffernan Insurance Releases 2022 State of the Market: Insurance for the Technology Industry

Heffernan Insurance just released a report on the 2022 State of the Market, Insurance for the Technology Industry.

In 2021, many of the disruptive trends that helped shape 2020 continued to evolve. These issues included the pandemic, with new strains of the virus complicating efforts to return to normal, as well as cyberattacks, regulatory action and claims of harassment and discrimination.

The impact of these factors on insurance rates and capacity has continued, too. At Heffernan, our data shows cyber insurance rates are up substantially. Depending on the account’s risk level, rates can be up 40% to 100%. Underwriting is also stricter, and securing ransomware coverage can be especially challenging if you have a history of claims. New InsureTech entrants are combining ransomware prevention technology to offer higher limits for clients interested in an alternative.

In the D&O markets, we’re seeing some improvements. Both public and private D&O rates are still increasing, but public D&O is benefiting from more competition on pricing, while private D&O is also seeing smaller rate increases. Additionally, on Feb. 7, 2022, Delaware General Corporation Law (DGCL) allows for the use of captive insurance for Side A D&O insurance, which is expected to contribute to more creative and cost effective solutions for D&O (See D&O Coverage Options Section).

This report examines the current insurance trends impacting the technology practice industries as we head into 2022. In particular, this report will focus on how these trends are impacting the cyber and D&O markets. With an accurate understanding of the current risk landscape and underwriting trends, you can take steps to position your company for success.

To view the full report, click here.