BMA report reveals $7.75bn surge in cyber insurance premiums and a $120bn market forecast

The Bermuda Monetary Authority (BMA), the island’s regulatory body for financial services, has released its annual Bermuda Cyber Underwriting Report, showcasing a significant 63.7% increase in cyber insurance gross written premiums, which reached $7.75 billion in 2022.

According to the report, this increase reflects Bermuda’s growing significance as a reinsurance hub in the global cyber insurance market, which is expected to expand from $13.5 billion in 2023 to $120.47 billion by 2032.

The report also notes that small and medium-sized enterprises (SMEs) are particularly vulnerable, with 73% experiencing cyber incidents in 2023.

It further points to notable growth in the captive insurance sector, where cyber GWP rose by 14% to $172 million, and the number of captives increased from 28 to 33.

One captive insurer alone contributed more than half of this total, with 69% of premiums written directly and reinsurers covering the rest. This growth highlights the importance of captives in managing cyber risk effectively.

According to the BMA’s report, a key focus is improving insurers’ ability to manage cyber risk accumulation and silent cyber exposures. It indicates that 37%…