By examining insurance purchased by corporate, public sector and not-for-profit organisations between 2013 and 2017, Aon Inpoint – Aon’s data, analytics, engagement and consulting team – has predicted that by 2021 the most rapid growth of premiums will be seen in cyber insurance products, with a global market worth estimated at $730 billion and an annual growth rate of 5.3%.
Aon Inpoint points to cyber premiums’ significant 23% annual growth over the past five years in estimating worldwide premiums at $4 billion by 2021.
Additionally, industry segments including financial institutions, mining and minerals, and technology and media sectors are all expected to expand rapidly in comparison to other industry sectors, with an annual growth rate of around 6% in each case.
Looking back to 2017, of the $730 billion commercial P/C insurance purchased, a figure Aon says will rise to $900 billion by 2021, the manufacturing sector generated the highest premiums globally, with an estimated $111 billion. Agriculture, fishing and forestry followed, boosted by the high value of the segment in China and the North America.
Michael Moran, Chief Executive Officer (CEO) of Aon Inpoint, said, “As we look ahead, we are seeing a broad shift of companies putting a greater value on intangible assets, such as cyber and intellectual property.”
“There are multiple reasons for the increased focus and increased premiums ranging from financial statement protection due to a business interruption to the constantly evolving global regulatory environment including the European Union’s General Data Protection Regulation.”
“At this time, a standardized data set that describes the size and segmentation of commercial lines insurance does not exist in the market. Our research, which segments the global market in detail by product, industry and client size, fills an important gap, and can be used by insurers to identify new underwriting opportunities worldwide,” concluded Moran.