Rates in the global insurance market generally firmed in the second quarter of this year, with cyber security emerging as a key operational risk for organisations, according to global broker Marsh.

Its Risk Management Global Insurance Index report notes that property insurance rates rose in the second quarter by more than 20% in loss-affected companies and 10-20% in companies without losses.

The increase was driven by unexpected adverse loss developments from the 2011 catastrophes, increased focus by insurers on information provided by insureds, a rise in attritional losses and changes to insurers’ calculations of their risk-adjusted cost of capital.

US companies experienced more rate increases than decreases in most major lines of insurance, the report says, with increases in property insurance and workers’ compensation rates.

However, rates for directors’ and officers’ liability insurance stabilised following nearly a decade of decreases, and these now appear to be firming.

The report says some insurers have indicated they will seek further increases in the second half.

Noting that insurers continue to adapt to the risks that technology poses by expanding privacy liability insurance, it adds: “Increased reliance on technology has firmly cemented cyber security as a key operational risk for organisations.”

Coverage for risks associated with cloud computing is now available for losses suffered from the failure of an insured’s cloud provider.

However, pricing in the global cyber insurance industry remains flat, due mainly to competition from new insurers.