Advisen data shows that cyber program premiums paid at renewal has been decreasing gradually following its peak in mid-2009 and seems to be stabilizing over the past 2 years. This contrasts with the mid-market composite, which shows program premiums for the mid-market have been on an upward trend over the same period. The stabilization of cyber program premiums seems to correspond to the relatively flat slope of surplus as a percentage of GDP. This suggests supply and demand has remained stable over the past two years.
ADVx tracks changes in program premiums paid at renewal by commercial lines insurance buyers. The ADVx Mid-Market Index is the composite of the individual lines of business weighted by their relative premium volume as reported in Best’s Aggregates and Averages for businesses having annual revenues less than $250 million. The ratio of Insurance Industry Surplus as a percent of Gross Domestic Product (GDP) is a measure of the balance between supply (surplus) and demand (GDP). If the ratio increases (meaning greater supply) rates will frequently decrease, conversely if the ratio declines below 3.2 rates will frequently increase.
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