Earlier this month, it was announced that James Barrett (pictured) would be stepping into the role of head of healthcare and cyber for Arch Insurance International.
Barrett served as interim head of cyber since October 2024, and, in his new role, will oversee underwriting activities across both the cyber and healthcare portfolios.
Speaking on the appeal of this new role, Barrett said: “What makes this dual role so interesting is that cyber and healthcare are in very different stages in their market cycles. Healthcare has been a hardening market since 2019; whilst the cyber market has been softening since the large rate increases we saw in 2022.”
Barrett revealed that healthcare is experiencing challenges in some locations, but thriving in others: “In healthcare, the US market is still challenging - claims values have been elevated for some time and frequency of severity remains. However, we have been expanding business into new territories such as France, Spain and the British Overseas Territories.”
The difficulties in the US healthcare market are reflected in data from the Medical Professional Liability (MPL) Association Industry Report from May 2024: “…the combined ratio for the industry improved from 102.4% in 2022 to 101.3% in 2023…While the results of 2023 represent the best performance since 2017 when the industry reported a combined ratio of 101.7%, the industry still has not generated an underwriting profit since 2013.”
The cyber market, on the other hand, Barrett views as maturing.
Barrett explained: “Rate reductions are slowing, and we expect rates to be roughly flat over the next year. We’re focused on continuing to build our presence, particularly in the UK where uptake of cyber coverage has been slower than in the US…”
This slower cyber uptake in the UK compared to the US is reflected in global market trends.
According to Munich Re’s Cyber Insurance, Risks and Trends 2025 report, North America continues to dominate the cyber insurance market, “ with total premium of US$10.6 billion, and a 69% share of global premiums in 2024.” In comparison, Europe’s total premiums were “US$3.3 billion, accounting for 21% of global premiums.”
When navigating both insurance sectors, Barrett argues: “the playbook needs to be different for each ..”
“In healthcare, it’s all about understanding claims trends and how clients are managing those risks. Underwriters are always appreciative when brokers can provide a solid insight…”, Barrett added.
Speaking on cyber, Barrett believes brokers need to manage client coverage perception: “In cyber, brokers are continually having to keep up with evolving threats and there will also be a need to manage client expectations with rates starting to level.”
Barrett argues the importance of brokers aligning with new developments: “AI and other emerging technologies are shifting the cyber risk profile, while the regulatory landscape for cyber is also evolving rapidly… brokers should look to build relationships with established carriers and a long-term commitment to cyber to ensure the sustainability of the market.”
With the evolving cyber landscape, brokers can support insurance uptake.
According to Barrett: “By educating their clients on the ‘when, not if’ nature… they could help the market to grow and close that protection gap. With insurers increasingly requiring robust, third-party risk management programmes, brokers play a central role in helping clients to build this capability into their risk management strategies.”
Barrett also believes that informed brokers can offer better support: “Brokers who stay informed on emerging risks will be the ones who deliver most value to clients...”
Barrett argues that addressing risks is about teamwork: “It all comes down to underwriters and brokers working collaboratively to understand the nuanced requirements of our mutual customers.”
Brokers must also communicate transparently: “A key characteristic of strong insurer-broker relationships is transparency of information sharing. The more a broker can tell us about a client’s risk management and claims history, the more informed our underwriting will be,” said Barrett.
For future steps, Barrett believes that claims coordination is an area of focus. “Especially in cyber, when several carriers are involved, there can be a multitude of lawyers, forensic accountants, and other vendors,” he said. “This can slow down claim settlements and add cost…having a coordinated claims voice from the outset, the process can be streamlined and the ultimate customer experience can be improved.”
