SIMON BASHAM: Sure. Yeah, great question. So CyXS launched at the beginning of 2023. We had an initial plan to write around about $25 million of premium on the facility. We've just closed out the annual period. It's been well in excess of 40 million. So beyond our original expectations. It's an important part of our business and it brings business to London. It proves of interest to clients, but it's not-- I think as a dis-- you don't look at it in context, that it's roughly about 12% or 13% of the total premium that we place into the market.
So it's really important and it supports our business, but it's by no means the only thing that we do. So there's still a significant opportunity that lives outside of the CyXS world in many other segments of our business.
LEIGHTON GALVIN: OK. And for those that don't participate on any of the facilities that we have--
SIMON BASHAM: Yeah.
LEIGHTON GALVIN: How can they stand out as a market to enable them to win business?
SIMON BASHAM: Yeah. And again, a really common question, a really good question. Service. Service, we've got a very, very big market these days. Lots of people competing for business, lots of interest in the sector, lots of growth plans in there. But the one fundamental people often skip over is service. If you don't service business, it's not turned around in a timely fashion with working with brokers and so on, then you can have a great proposition, but you can't bring it forward.
Or, nobody will see it because you haven't delivered it to the broker. And therefore, to the client, on time. So those insurers that have a consistent high standard of service stand out and perform better than their peers. So it's doing the basics right and it's often overlooked for all the new shiny things of a facility. Or-- but service is critical. And a common either praise area or area of complaint for our clients about their frustrations.
LEIGHTON GALVIN: And is that from a claims perspective? Or, is that just the service that they provide to you and your team?
SIMON BASHAM: The service they provide to us so that we can provide-- deliver to clients along their deadlines. So they've got to make decisions, the insurance buyer will have to go to a board or to go to someone else to get sign off, or to confer and make a decision about limit purchase, or whether they're buying a tool. And if they can't do that with a sufficient time and notice they require, they get frustrated.
So we've always got to answer to somebody else. I think the carriers feel-- sometimes they can ponder a little bit and then-- because we're the ones setting the deadlines. We're answerable to someone else. We're always working for a client. So we've got to deliver that service to the client. Therefore, the insurers that deliver a high quality service to us, help us deliver that service to a client. So it's all part of the same universe really. It's all about-- service and timeliness is really important.
LEIGHTON GALVIN: Good. Thank you for that. In terms of rate for 2024, what are you predicting? What are have markets expressed to you that is going to happen? It's really key to get an understand for that.
SIMON BASHAM: Yeah, no. Again, obviously somewhere with a lot of volatility in recent years. Obviously, we've had a softer market conditions in 2023 and some of 2022, but 2021 was an incredibly hard market with all of that volatility and up and down in those periods. We're expecting this year to be a little bit quarter by quarter because last year was very much a quarter by quarter market. Rate started here and it finished off here. So we're expecting almost-- the beginning of this year has become quarter five of last year.
LEIGHTON GALVIN: Right.
SIMON BASHAM: So we're seeing bigger reductions at the moment, but we do expect those to taper off as the year goes on. But we're expecting compound of all of that around -7.5% for the year is what we're-- but that's a big generalization because there are multiple segments of the market. But generally, a changeable picture quarter by quarter, but highly competitive.
LEIGHTON GALVIN: And are there any industries that you're targeting to win new business in, are there industry kind of verticals that you're kind of looking at that are important this year?
SIMON BASHAM: Yeah, we're-- to make ourselves really, really relevant and make sure that cyber resonates with clients, we've developed, and continue to develop, industry specific products, so that they address the specific needs of those different industries. And we've seen some real growth in new business where we've done that, particularly in the marine space of late, natural resources. Previously we've done that in the airline space.
But I think it's just making sure the product serves the needs of each individual client, industry vertical, just so they don't believe it's a one size fits all, regardless of industry. But I think making sure it resonates has been really important, particularly as we're looking for to target a big pocket of people that don't buy cyber insurance. So you've got to make sure you're relevant and you're striking the right note. So I think making sure it addresses that industry need is really important.
LEIGHTON GALVIN: And I'm going to touch on a topic that's, I know, close to your heart, the war exclusion.
SIMON BASHAM: Yes.
LEIGHTON GALVIN: Can you-- in this interview or chat, can you give me some updates on what's happening with the war exclusion, what markets can expect from Willis and when the next updates are due? So we can keep everyone informed.
SIMON BASHAM: Yeah, sure. So again, 2023, incredibly volatile year. We've had new requirements coming from Lloyd's in March about the minimum standards that managing agents had to abide by. And that's been a continually volatile and reinterpreted item all the way through 2023. So it was a very reactive year. So I think everyone was just holding on for dear life to try and make sure we keep clients up to date, that business can stay in London, that-- again, in that highly competitive way everyone's trying to find an advantage and there are people seeking a competitive advantage.
This year, we've taken a much more deliberate stance knowing what we learned last year, we've come-- we approached and have had the LMA sign off a new war exclusion. So it's approved by Lloyd's. It's something that's affirmatively reinsured by the largest reinsurers in the cyber market. And therefore, something that most carriers can support and we expect to see that as a more commonly used exclusion this year, albeit the other ones will still remain available in different situations, but we're trying to be really deliberate to make sure that as a point of neutrality. And a trading card to try and win business or lose business. So we've got really good feedback from clients and carriers, and the LMA and Lloyd's on that approach so far. So we're hoping for more stability, but there will no doubt be a few bumps in the road.
LEIGHTON GALVIN: Of course. Thanks again for joining us, Simon.
SIMON BASHAM: Pleasure.
LEIGHTON GALVIN: And thank you all for tuning in today with 5 minutes with FINMAR. We look forward to seeing you again soon.
