Beazley seeing rising cyber insurance demand in UK

Lloyd’s insurer Beazley is seeing higher demand for cyber insurance products in the UK ahead of planned changes to EU privacy laws, according to Beazley chief underwriting officer Neil Maidment.

Speaking to journalists after the announcement of Beazley’s 2013 results this morning, Maidment said demand for cyber cover in the US remained strong and was starting to increase elsewhere.

He said: “We are seeing the first signs of increasing demand outside of the US in countries such as Australia as the UK and other countries within the European Union look to adopt similar regulations around privacy as those that have driven demand for our products in the US.”

Growth areas

Cyber insurance is one of several areas where Beazley expects to grow in 2014.

The company is expecting premium growth of between 5% and 10% in 2014, after boosting gross written premium by 4% in 2013.

2013 was the Lloyd’s insurer’s second year of premium growth after a stagnant 2010 and 2011.

Within specialty lines, in addition to cyber insurance, Beazley is aiming to write more employment practices liability business because of improving rates, driven by recent high claims volume.

It is also planning to grow its new aviation book, which wrote $25m of premium in its first year, and will add satellite insurance to its portfolio when new satellite underwriter Denis Bensoussan joins in March from rival Lloyd’s insurer Hiscox.

The company also sees continued opportunities to grow its marine liability business after doubling the book to $25m on the back of rising rates in 2013.

Chief executive Andrew Horton said: “Our aim is to continue to build on the profitable footprint we have had over many years.”