Rates fall in TMT sector

Europe

In a new report, insurance broker Marsh has highlighted the soft market in the European technology, media and telecommunications (TMT) sector where it says the price of insurance limits have dropped by almost 20% in the past two years. The Marsh report, which surveys 144 TMT companies across Europe, found that companies are not taking advantage of the softer market to purchase greater coverage, despite rising risks. The report warned that convergence of the TMT sectors was gathering pace, with telecommunication companies now offering fast access to the media through broadband connections, mobile phones downloading MP3 files and other content, and distinctions between transmitters of information and suppliers of information are blurring. This convergence, the report argues, is increasing professional liabilities, such as a virus being transmitted through a company’s website, and highlights the rise of technical risks that need to be addressed and insured. The report identified a particular lack of awareness by middle market sized firms on their liability exposure. Marsh predicts an increased demand for cyber risk insurance cover and risk management services in the next 12 months.