What is especially noticeable about cyberrisk policies is that they provide a full value end-to-end service. The cover involves interaction with the insured before the policy is entered into to determine the risk mitigating requirements which are built into the policy, and client support at claims stage when a cyberattack occurs.
Changing products from simple indemnity products to full value products where possible will benefit both insurers and policyholders to manage risks. Because of the added services it may not reduce the premiums significantly. It will however lessen to some extent the move to captive insurers (which countries all over the world are chasing) and parametric insurance.
It will enable insurers to assess and mitigate risks based on the considerable data that is available and is becoming increasingly useful. It can avoid the need to refuse to insure certain risks or the rejection of claims for risks not properly disclosed.
Unlike the cyber market, many classes of insurance do not run the risk of a major systemic event and the rise and fall of cyber insurance premiums need not be a feature of all full value underwritten risks.