M&A Impact on Cyber Insurance Market Capacity
Recent mergers and acquisitions (M&A) among leading re/insurers have sparked concerns in the cyber insurance sector. Experts warn these consolidations might shrink the market’s overall capacity.
Expert Insight
Marsh’s Global Cyber Practice Leader, Niall Konyar, highlighted the issue, describing the situation as “seeds of concern” for the cyber market. The worry stems from fewer independent players, which could limit competition and reduce underwriting capacity for cyber risks.
“The market is at risk of becoming less competitive and more concentrated. This reduction in capacity could push prices up and limit options for buyers,” Konyar explained.
Market Consequences
M&A activity typically aims to improve operational efficiency and scale, but in the cyber insurance field, these benefits might be overshadowed by a diminished capacity to absorb large or complex cyber risks. The concern is that remaining insurers could tighten coverage, affecting businesses’ ability to secure necessary protection against cyber threats.
This consolidation trend in re/insurance may tighten cyber insurance capacity, raising prices and reducing coverage options for insured entities.
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