Ben Berkowitz

Last week's deal by Prudential Financial to take on $26 billion of the retirement liabilities of General Motors has reignited a flagging part of the American insurance market.

Rates for cybersecurity insurance edged lower in the last few months despite surging demand, as heavy competition brewed among insurers rushing into the market in search of the next profitable product, insurance brokers Marsh said on Wednesday.

The recent string of sensational hacker attacks is driving companies to seek "cyberinsurance" worth hundreds of millions of dollars, even though many policies can still leave them exposed to claims.