The following blog post is based on CyberCube’s report, “Projecting Cyber Insurance Growth: A 10-Year US Market Outlook.” This report provides valuable insights into the future of the cyber insurance market in the US.
Projected cyber insurance market growth
With the cyber insurance market set for expansive growth, we need to keep an eye on cyber risks as they continue to present significant financial risks to insurers. CyberCube projects that the U.S. standalone cyber insurance market could reach $45 billion in premiums by 2034, which is five times its current size. This growth is driven by the increasing digitization of the global economy and rising concerns about cyber threats. With premium growth ranging from $17 billion at 10% growth to a potential $109 billion at 30%, it's clear that cyber insurance is on the cusp of becoming a major sector in P&C insurance.
Market challenges
There are some challenges affecting this growth. Cyber has the potential to surpass the largest insurable natural disaster - Hurricane Katrina. In order to do this, insurers will need to significantly increase their capital reserves to keep up with the rising exposure. There is a potential that the market could require a 500% increase in capital to manage the potential for a 1-in-250 year loss event. CyberCube’s data shows that many companies in the small and micro segment are underinsured. In order to continue with this projected growth, the market will need structural innovations, broader participation from reinsurers, and additional capital sources to meet this rapidly growing demand.
Webinar information
CyberCube was joined by CyberCube's Yvette Essen, Head of Content, Communications and Creative, and Alex Tenenbaum, Director of Services, on October 10th at 12pm EST for our webinar where they discussed key insights from our latest report, "Projecting Cyber Insurance Growth: A 10-Year US Market Outlook." The webinar covered how the P&C insurance sector can build a sustainable market for cyber risk transfer. Learn about the future of the U.S. standalone cyber market and the challenges and opportunities ahead by accessing the full webinar here — Projecting Cyber Market Growth.
