This article was first published by Guy Carpenter .
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In this video interview with听听concurrent with the 2022 Monte Carlo Rendez-Vous event, Guy Carpenter鈥檚 Erica Davis and Anthony Cordonnier, Global Co-Heads of Cyber, address the challenges and opportunities of the cyber market.
鈥淚 think there is still a challenge for organizations to really understand cyber risk鈥攖hat鈥檚 the full scope of the exposure and also how best to protect themselves,鈥 Erica said. 鈥淎s an industry, we鈥檝e struggled to define the product and really make it into a tangible purchase for them.鈥
Anthony explained how the market has transitioned as risk potential has shifted.
鈥淚f you think about the cyber product and how the losses impacted the market in recent years, this used to be a privacy-focused product impacting larger organizations,鈥 he said. 鈥淲e鈥檙e now seeing trends like ransomware that has really brought it to life.鈥
Capacity has been an enduring question in the cyber market. Only about half of organizations around the globe currently have cyber coverage. How much capacity is enough? Acknowledging tight availability, Erica also expressed optimism in the sector鈥檚 continuing ability to serve clients.
鈥淥n the reinsurance side, capacity is very constrained. We also have been able to support the growth strategies of our clients, so it is available at this time. But I think there is a lot to be done over the next couple of years so we can continue to support the market,鈥 she said. 鈥淭here has been a number of new reinsurers who are interested in supporting the market who previously hadn鈥檛 been players on the reinsurance side, so that鈥檚 been an encouraging sign for us.鈥澨
