Cyber Insurance - Thematic Intelligence

Cyber insurance provides cover against first- and third-party financial losses arising from damage to, or loss of data from, IT systems. The publisher estimates the global cyber insurance market size to be $16.7 billion in gross written premiums (GWP) in 2022. Significant growth in 2020 and 2021 was largely due to substantially raised premiums. After the pre-pandemic years - characterized by high coverage limits, flat rates, and abundant capacity - the cyber market has hardened considerably. The frequency and severity of cyberattacks, coupled with economy-wide shifts to remote working, caused insurers to raise prices at these rapid rates. We forecast the global cyber insurance market to be worth $33.4 billion in GWP in 2027, recording a compound annual growth rate of 14.9% over 2022-27.

Cyber risks are growing for SMEs of all sizes. According to the publisher's 2022 UK SME Insurance Survey, almost 50% of medium-sized firms said that their cyber risk has, to some extent, grown since the onset of COVID-19. While the pandemic has raised the cyber risks most businesses face, it has also increased the likelihood that many SMEs will purchase cyber insurance. Indeed, over a quarter of UK SMEs indicated that they purchased cyber as a result of increased remote working due to the pandemic. While many businesses clearly understand the risks and need for cyber insurance, others still lag behind. These are the customers that brokers and other intermediaries should target to grow the line further. The tough economic climate may hold some businesses back from making the purchase right now. But as economies return to growth, the cyber line looks set to receive strong demand going forward.

Scope

• According to the National Association of Insurance Commissioners (NAIC), Chubb was the largest cyber insurer in the US in 2021, reporting $473.1 million in direct written premiums and a 9.8% market share
• Over a quarter of UK SMEs indicated that they purchased cyber as a result of increased remote working due to the pandemic
• The personal cyber insurance market is considerably smaller than the commercial one, but the product is slowly becoming more popular. In the publisher's 2022 UK Insurance Consumer Survey, 5.9% of respondents indicated that they owned a personal cyber insurance policy

Reasons to Buy

• Determine market size and key growth opportunities in the global cyber insurance landscape
• Benchmark yourself against the leaders in the market
• Ensure you remain competitive as new innovations and insurance models begin to enter the market
• Be prepared for how regulation will impact the cyber insurance market over the next few years.