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Indian River County Board of County Commissioners 009 Gallagher <br />100 CORE 360A <br />Cyber <br />Where we were: 2021 <br />• With the rise in ransomware attacks across the U.S. and increases in carrier reported losses, the <br />Cyber insurance market hit an inflection point in 2020. <br />• Carriers became pressured due to the increasing frequency and severity of cyber claims and a more <br />stringent regulatory environment at the state, federal and international levels. <br />• 2020 began with the first real signs of a hardening market as the larger, more sophisticated risks in <br />specific industry sectors became subject to greater underwriting scrutiny and ultimately increased <br />premiums. In fact, in 2021, even those clients with optimal data security controls were seeing rate <br />increases in the 25%-50% range. Less attractive risks saw 75% and greater increases, if they were <br />offered terms at all. <br />• Ransomware attacks are a significant contributing factor to the hardening of the Cyber market. <br />• Carriers are responding with higher rates, higher retentions and coinsurance requirements. <br />• Social engineering losses also continued to mount. According to the FBI's IC3 2020 Internet Crime <br />Report, 2020 saw a record 69% increase in cybercrime from the prior year's report, with business <br />email compromise losses accounting for half of all losses. <br />100.0: <br />80,01% <br />60..1% <br />4ra_0 <br />20-0% <br />: <br />OD% SZE <br />2020 2020 <br />01 02 <br />Source: Gallagher US. Chents <br />Cyber Rate Treads 2020-2421 <br />2020 2020 2021 <br />03 G4 Q1 <br />Medfan Rate Change <br />971% <br />2021 2.021 2021 <br />02 03 (14 <br />75th F'elcentale Rate Change <br />