The global cyber insurance market has recently returned to profitability following two years of rate increases and tightening terms and conditions, says S&P Global Ratings (S&P).
Annual premiums reached about $12bn in 2022, and are likely to increase by 25%-30% per year to reach about $23bn by 2025.
In a report published yesterday “Global Cyber Insurance: Reinsurance Remains Key To Growth,” S&P says that its survey of global multiline insurers (GMIs) and global reinsurers suggests growth in cyber insurance will depend heavily on reinsurance to provide capital and manage accumulation risk.
“Cyber insurance is still the fastest-growing subsector of the global insurance market. This subsector relies to a great extent on reinsurance protection, and we believe reinsurers remain critical to the sustainable growth of the market,” said S&P credit analyst Manuel Adam.
Insurers and reinsurers are not immune to cyberattacks on their operations, and any service disruptions or data breaches will likely affect their bottom lines and potentially their capital positions.
To better understand the impact, S&P analysed cyber exposure data from cybersecurity specialist,…
