Instruction Manual: RLI: cut costs in the casualty insurance business or expand in cyber insurance (again)?

Cyber insurance, which helps policy holders (typically companies) deal with risks related to data breaches and information technology incidents, was a fast-growing and higher-margin line of business in the property and casualty insurance industry in recent years. However, RLI, a successful publicly traded insurer in the USA, substantially scaled back its activity in this area at the end of 2021, just as cyber incidents were becoming more frequent and costly. In 2022 and 2023, RLI’s operating profitability in its Casualty business segment (which previously included cyber insurance) declined due to competitive market conditions, according to the company. At the time...