Arch’s Marshall calls for increased focus on longer-tail cyber exposures

As the cyber insurance market continues its growth trajectory, one of the major uncertainties is around third-party losses and potential tail risk.

The majority of claims to date have been first-party losses, such as the post-2018 surge (and 2023 resurgence) in ransomware claims.

But more needs to be done to build understanding of how liability exposures within the cyber class may play out, according to Marilyn Marshall, EVP, professional liability and cyber at Arch Insurance.

Speaking to The Insurer TV on the sidelines of the Net Diligence Cyber Risk Summit in Miami Beach, Florida, Marshall said it was critical that carriers develop “a better understanding of the third-party losses and the longer-tail aspect of the cyber line of business.”

“One area we're watching closely and that everyone's trying to understand better is non-breach privacy violations and the types of claims that we can see there,” she added.

Arch has now been offering cyber products for close to a decade, having introduced its first product, Arch NetSafe, back in 2015. A new product, CyPro, was rolled out last autumn, adding an option for companies with more than $100mn in revenue.

“This product is… broader and it's not admitted, so it gives us more flexibility around coverage, negotiation and the pricing of the product,” said Marshall.

Arch has also been a carrier for niche program administrators for about two decades. In that time, Arch has written over $5bn of premium through delegated partnerships, including those it has with Coalition Insurance and UpFord.

“We have a team in place that has built a reputation to be collaborative and consistent in our approach,” said Marshall.

Marshall added that Arch’s partnerships help the company to scale up its smaller-market business.

“We're seeing so much new interest in the space, and some older-established players are also ramping up.”

Watch this 4-minute video to learn more about:

  • Why carriers need to better understand third party losses and long-tail exposures
  • Which firms would be best-suited for Arch’s new CyPro product
  • How Arch’s collaborations help it to connect with the smaller market space