According to Advisen’s ADVx™ Index, middle-market cyber insurance premiums are down 0.62 percent in February compared to January.
This is the first month-to-month negative change since premiums fell nearly 1 percent in June 2013 compared to May of the same year.
ADVx tracks changes in program premiums paid at renewal by commercial lines insurance buyers.
The ADVx large market (LM) and middle market (MM) indices are the composite of the individual lines of business weighted by their relative premium volume as reported in Best’s Aggregates and Averages, where LM is for businesses with annual revenue of more than $250 million and MM is for businesses with annual revenue of less than $250 million.
The “ADVx Index – Trend” chart presents the index value while the “ADVx Index – Percent Change” chart presents the year-over-year percentage change.
The ratio of Insurance Industry Surplus as a percent of Gross Domestic Product (GDP) is a measure of the balance between supply (surplus) and demand (GDP). If the ratio increases (meaning greater supply) rates will frequently decrease, conversely if the ratio declines below 3.2 rates will frequently increase.
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