Adrian Johnson
TLDR:
- Cyber insurance market poised for growth due to increased demand.
- New players entering the market may decrease premiums.
Article Summary
The cyber insurance market is expected to experience significant growth in the coming years as cyberattacks continue to rise in number and sophistication. Munich Reinsurance Company predicts the global cyber insurance market to reach around $29 billion by 2027. Ransomware, business email compromise attacks, and data theft are identified as main loss drivers for risk owners and insurers.
The market is seeing increased demand for cyber insurance offerings as more organizations look to manage their risk. However, there is a gap between insured losses and economic losses, highlighting the need for improved bridging. Despite advances in cyber modeling, predicting large-scale attacks or outages remains challenging. Recent incidents such as the CrowdStrike outage demonstrate the interconnectedness of systems and supply chains.
Munich Re highlights that the cyber insurance market is still not mature, with variability in policy language and terms. Underwriters are making adjustments by introducing exclusions for war-related events and sublimits for systemic events. Insurers may not be able to handle catastrophic cyber events, requiring government-level involvement.
In conclusion, the article stresses the evolving nature of cyber risks, the need for improved insurance coverage, and factors driving the growth of the cyber insurance market.
