Global Cyber Insurance in Focus in New Report

How’s the cyber insurance market looking? Good question, this new report should have a few insights fro you.

The QualRisk Cyber Insurance Center (QCC) announces the release of its 2024 Global Market Report (GMR). The report highlights global cyber insurance premium growing 6% in 2023, the slowest rate of growth since 2019, reaching a total global premium of $ 14.4 billion. The report also forecasts a doubling of the global cyber insurance market by 2030.

“While the US has been the major driver of cyber insurance premiums in the past decade and will remain the most important market for the foreseeable future, our view is that the bulk of the future growth will be generated in other regions, starting with Europe in the remainder of the 2020s and Asia well into the 2030s,” said Daniel Kasper, CEO of QCC. “Without a market changing event like the escalation of ransomware damages several years ago, the recent extremely high growth rates in top-line premium will not be repeated without significant growth in the underlying exposure, which is not likely to occur in the next several years in QCC’s view.”

The 2024 GMR provides the most comprehensive proprietary view of the global cyber market, including:

·         Historical premium growth rates for each major country market and region in the world, with all markets delivering high 20+% compound annual growth over the past eight years.

·         Breakdowns of premiums for small commercial, mid-market, and large commercial customer segments in each country and regional market.   For example, in the U.S. small commercial risks now comprise 30% of the U.S. cyber market, up from 18% in 2015.  

·         Cyber insurance premiums as a percentage of overall P&C premiums, which provides GMR subscribers an estimate of cyber market maturity, where the US, UK, Sweden, and Canada currently have the highest ratio.

·         The QCC Global Cyber Insurance Price Index, which recorded a decrease in 2023 for the first time since mid-2019 when ransomware damages began to drive unprecedented rate increases.

·         U.S. premium by company, where Chubb remains the market leader in gross written premiums, Arch delivered the fastest four-year growth out of the top 20 carriers, and The Hartford issued the most cyber policies.

·         An overview of the consumer cyber market in the US, where State Farm is the largest writer of identity theft coverage. QCC forecasts the gradual transformation of today’s identity theft coverage into broader consumer cyber insurance policies, increasing the gross written premiums from $300 million today in the U.S., to more than $2 billion by 2030.

For more information on the Global Market Report, please contact the QualRisk Cyber Center at dataproducts@qualriskcyber.com.