Coverage patterns and predictions

Cyber liability: More than coverage

Cyber insurance is becoming more streamlined and effective as we approach 2025. Market data from Embroker’s 2024 Cyber Risk Index Report found that cyber insurance adoption has reached an all-time high, with 93% of startups now carrying coverage—up from 90% in 2023 and 86% in 2022.

• Rising attack frequency, with 81% of venture-backed founders reporting breach experiences
• Shifting external mandates, as board requirements remain strong while investor and customer requirements soften
• Growing recognition of cyber insurance as a funding facilitator, with 41% citing it as crucial for securing investment

Workers’ compensation: Adapting to new ways of working

Workers’ compensation is evolving to meet the needs of today’s workplaces, employees, and how we work:

• Premium increases of 3-7% are expected due to inflationary pressures and rising medical costs
• Remote work is reshaping claims patterns and risk assessment methods
• Telemedicine and virtual care platforms have evolved from alternatives to mainstream solutions
• Mental health coverage is emerging as a critical component, reflecting broader awareness of psychological workplace injuries
• The gig economy and hybrid work arrangements are challenging traditional workers’ comp models

Property & casualty market: Responding to climate and cyber challenges

The P&C market is experiencing high demand with low supply for policies, particularly in property lines where climate risk is driving significant changes:

• Premium increases of 10-15% are anticipated in catastrophe-prone regions
• Carriers are implementing stricter underwriting criteria for cyber coverage in response to escalating threats
• Insurance coverages that activate upon event are gaining traction, especially for climate-related risks, as opposed to those that require a claims and assessment process
• IoT devices and real-time data analytics are revolutionizing risk assessment and pricing models