Kennet Otto and Georgy Matov from WTW look at the fast-growing cyber insurance market in Europe and the increasing recognition that cyber coverage is key to economic success.
Cyberattacks have grown more sophisticated due to advancements in AI, making them easier to execute. The World Economic Forum has identified “cyber insecurity” as the fourth most significant global risk over the next two years and one of the top 10 global risks over the next decade.
Political factors also contribute to cyber threats, exemplified by increased cyber attacks from Russian state-backed actors after the Ukraine conflict began in 2022. This makes cyber insurance – and developing the skills to manage this high-profile, emerging risk – crucial for national economic resilience.
In response, the European Union has introduced NIS2, DORA, the Cyber Resilience Act and the Cyber Solidarity Act to boost cyber resilience, enhance cybersecurity and improve coordination among member states.
A MARKET POISED FOR MAJOR GROWTH
The cyber insurance market in Europe has experienced major growth in recent years, although it is still in its infancy compared to the more developed market in the U.S. The U.S. cyber…
