According to Fortune Business Insights, the global cyber #insurance market was $6.15 billion (USD) in 2020 and is projected to be $36.85 billion in 2028 tracking a CAGR of 25.3% during the 2021-2028 period. Excerpts:
“The solutions considered in the scope includes Chubb Tailored Solutions, Aon Cyber Insurance, Munich Re Cyber Solutions, Hiscox Cyber Liability Insurance, AIG CyberEdge and more. The global impact of COVID-19 has been unprecedented and staggering, with cyber insurance witnessing a significant impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 22.4% in 2020 compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre pandemic levels once the pandemic is over.
“Cyber insurance covers businesses’ cyber liabilities post-attack that includes fine charges, compliances, hardware and software repairs, third-party compensation, among others. The increasing cybersecurity risk and data breaches is driving businesses in implementing insurance policies. Also, various countries are imposing fines and regulatory rules on the company for any data breach. Small and medium industries are also being targeted for cyberattack, this fuels the demand for new insurance products for small businesses. For instance, in March 2021, Aviva plc. designed new insurance products dedicated for small businesses to handle the cyberattacks.”
Nasser Fattah, North America Steering Committee Chair, Shared Assessments:
“Cybercriminals do not discriminate. Businesses from all sizes and sectors are targets. And where there are breaches of sensitive and consumer information, expect regulators to subject fines. Today, we have home and auto insurance to protect us from unexpected costs, for example, fire or theft, and I see cyber insurance as a comparable need for businesses. Businesses need not only to recover costs and expenses due to cyberattacks but also to be able to tap subject matter experts, provided by the insurance carrier, that can quickly jump in after an attack to assist with forensics, legal, and media handling, to name a few. After a cyberattack, expect intensive, long hours, where there will be a need for external support, via your insurance carrier, to assist with the aftermath, while your IT and cyber teams remain focused on keeping the business up and running.”