Data from cloud-based insurance software platform SchemeServe points to strong growth in the cyber scheme market, although demand in the contractors all risks sector was hit hard by COVID-19. The findings are form SchemeServe’s bi-annual premium index of the schemes market and cover the period from 1st October 2020 to 31st March 2021.
The contractors all risks sector performed strongly at the start of 2020 with commission rates of 22.5% at renewal. But these rates fell to 15% by the end of the year. Into 2021, SchemeServe said demand had collapsed and in the latest six-month period total commissions were down 85% on the previous 12 months.
Adam Bishop, CEO of SchemeServe, said: “There was a huge drop in renewal volumes of CAR as contractors were unable to work initially during the first lockdown, and an increase in first premium volumes as people were able to get back to work. Could this be a market opportunity for brokers now as we come out of this lockdown?”
The latest index showed strong performance in the cyber market. Volumes in the period were up 126%, gross written premium was up 56% and commissions increased by 208% on the previous 12 months.
Bishop said: “It is probably fair to say that cyber has been fuelled by the demands of the pandemic with the huge increase in homeworking and heightened awareness of cyber risks.”
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