ALPS filed for a 49.2% rate increase to its Cyber Risk and Security Breach Liability Program in Montana, affecting 452 policyholders and generating an estimated $25,480 increase in written premium.

The updated rates apply to cyber coverage offered to lawyers and law firms insured under ALPS professional liability policies.

According to the filing, the proposed changes reflect evolving cyber risks facing legal professionals and emerging claims experience. ALPS noted that it has not updated its cyber rating manual since July 2021 and that larger law firms have generated disproportionately higher losses than smaller firms and sole practitioners. As a result, the insurer is moving away from a uniform per-attorney pricing approach and adopting a rating structure that places greater emphasis on firm size.

The actuarial memorandum cites a countrywide indicated rate change of 64.3%, which supported the lower Montana proposal. Because the program lacked sufficient Montana-specific experience, ALPS relied on nationwide data in its analysis. The filing states that the program produced a projected loss and loss adjustment expense ratio of 128.3%, compared to a permissible ratio of 71.3%.

Under the revised rating manual, firms with one attorney would pay a base premium of $75 per attorney, while firms with seven or more attorneys would pay $135 per attorney for standard coverage limits.

“As cyber risks continue to evolve for lawyers and law firms in both magnitude and complexity, corresponding claim experience has developed in a manner that warrants a revision to the existing rating methodology,” ALPS stated in its actuarial memorandum. The company added that the revised structure is intended to “better distribute risk across the insured population.”

The updated rates would apply to policies effective on or after October 1, 2026.