GlobalData analysis suggests the global cyber insurance market is set to thrive post-Covid and reach $20.6 billion in Gross Written Premium (GWP) by 2025.
The cyber market is already reported to have hit the $7 billion GWP mark, as the COVID-19 pandemic forced businesses to digitise processes and adopt remote working practices overnight.
More specifically, GlobalData recorded growth of 33.5% in 2020 and expects something closer to 27.3% in 2021.
“The cyber insurance market has seen rapid expansion in recent years, with customers enjoying high coverage limits, flat rates, and abundant capacity as insurers sought to capture business in a highly competitive market,” said Ben Carey-Evans, Insurance Analyst at GlobalData.
“Despite lower cover limits and increasing premiums, we expect the cyber insurance market to see continual strong year-on-year growth up to 2025.
“The need for robust cybersecurity and cyber insurance is becoming apparent to businesses of all types and sizes, as the frequency and severity of cyberattacks continues to rise.”
Carey-Evans added that COVID-19 has also brought about a permanent shift in the way businesses and consumers operate, with remote working practices set to stay and digital consumer channels seeing more use than before the pandemic.
“This lasting shift in behavior will push the demand for both commercial cyber insurance and to a lesser extent personal cyber insurance in the coming years,” he concluded.