27 Cyber security/data privacy Average U.S. cyber price per million trends for all industries Rate trends Considerations/conditions Quarterly cyber rate changes for MMA clients • Rate increases averaged 25% in Q4 • There have been significant changes 2022. However, we can sometimes in the cyber market. With a risk that 70.0% has good security in place and 60.9% get to near 昀氀at when leveraging 60.0% competition and helping highlight without recent claims history, the 57.9% an insured’s solid security posture market has become very competitive 50.0% 49.7% and controls. with all major players now looking to 41.2% • For some organizations that have increase their premium income. 40.0% 39.8% substandard security controls Marketing renewals to a broad array 35.1% of carriers will likely produce 30.0% (which are often small businesses), significant reduction in premium for 25.1% 24.9% they may experience declinations such insureds. As previously 20.0% or higher rates in the 30%–50% mentioned, the market remains very 12.9% range—but nowhere near what was 10.1% 8.0% experienced in early 2022. difficult for insureds that do not have 10.0% solid security in place. • Premium reductions for good risks • Capacity challenges remain in terms 0.0% may be achievable, particularly on Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 larger accounts and/or those that of limits desired, requiring the development of more complex have sought alternative options in layered towers. Source: Marsh PlaceMAP, U.S. Marsh McLennan Agency Data the marketplace. • Excess cyber coverage rates have been decreasing, providing some relief on the primary coverage lines as well. • Some carriers are considering pricing relief because of new exclusionary Cyber risk resiliency language being deployed on new and renewing accounts. Review last years’ completed cyber application to identify problematic responses and address mid-term via our Cyber Resiliency Network, if needed.