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PRICING AND DATA AVAILABILITYAn analysis of the pricing for cyber insurance cover shows that the rate on line (premium divided by limit ofindemnity purchased) for the primary layer (part of the policy that pays first in case of a loss) for this class ofbusiness is three times higher than for general liability cover and six times higher than for property.There are several factors that influence the price of different insurance products. In the case of cyber insurance,the price may also be driven by uncertainty over the risk compared to more traditional covers. This seems to bethe case, with much flatter pricing for cyber across firms than for other lines of insurance; the difference betweenthird and first quartile pricing is 1.7x for cyber, 9.1x for general liability, and 2.6x for property. The combinationof a higher absolute price and lower price differentiation suggests that cyber is early in its development and thatunderwriters are more conservative about the risk, creating a challenge to a core role of insurance – namely, thathigh pricing discourages take up, and flat pricing provides no incentive for firms to reduce their cyber risk andsave on premiums.FIGURE 10: PRICING ANALYSIS FOR CYBER, PROPERTY, AND GENERAL LIABILITYRelative pricing index, property =100Based on rate on line for primary layer for companies with turnover