May 23 - (The Insurer) - Howden Group CEO David Howden emphasised the need for organic growth and collaboration within the cyber insurance market in his opening keynote at the recent Howden Re Cyber Summit.

"Growth is really important," Howden asserted, highlighting his experience in growing businesses and stressing that the key to success lies in winning new clients rather than relying on market conditions.

Howden underscored the importance of collaboration across the industry, from reinsurers to brokers, to create value for clients.

He reminisced about the past challenges in the cyber insurance market, including capacity shortages and rising rates, and acknowledged the significant progress made in recent years.

"The reinsurance market did step up," he noted, commending the industry's efforts to provide more capacity for clients implementing robust security measures.

Despite these advancements, Howden pointed out a marked slowdown in growth within the cyber insurance sector.

Previously, the market experienced impressive compound annual growth rates of 25% to 35%, driven largely by rising rates and limited capacity.

Now, however, the growth rate has dipped to around 8%. Howden explained that this shift represents a transition from relying on market conditions to needing genuine demand-driven growth.

"We were fooling ourselves," he remarked, indicating that the high growth rates were more a product of the hard market than of strategic client acquisition.

Howden urged the industry to adapt by focusing on organic growth and expanding the market beyond the larger clients.

He emphasised the untapped potential within small and medium-sized enterprises, many of which remain uninsured despite the significant risks posed by cyber threats.

"We need to get out there and sell more," he said, encouraging the development of standardised, accessible products for these more vulnerable businesses.

“We've got to get demand into the business and increase our market, and that's very different from relying on a hard market and premiums to do that,” he added.

Additionally, Howden highlighted the role of data and innovation in driving market growth, stressing the need for better understanding of risks and the deployment of capital.

He called for creative reinsurance solutions to support insurers and brokers in delivering products that clients truly need.

Concluding his address, Howden expressed optimism for the future, encouraging attendees to work together to transform the cyber insurance market into a high-growth industry.

"Let's drive this market," he urged. With a nod to his passion for racehorses and the event being held at Ascot Racecourse, Howden likened the journey to building a successful business: "When it comes good, it is really, really good."