The Growing Cyber Threat: Understanding Your Exposures

The cyber (re)insurance market shows promising signs of long-term growth, with projections estimating its worth to reach impressive figures. Studies indicate substantial growth potential, with projections ranging from $90.6 billion to $120.47 billion by 2033 and 2032, respectively.

However, amidst this growth, the market faces challenges posed by frequent and sophisticated cyberattacks affecting organisations worldwide. Although these incidents haven’t yet reached systemic levels, the risk of extreme direct losses—potentially exceeding $2.5 billion per incident—has risen significantly, according to the IMF. Additionally, indirect losses from cyber incidents are substantial and often surpass the direct losses reported by firms.

Indeed a recent study by Stocklytics.com suggests the cost of cybercrime has rocketed with 2024 set to see the figure reach $9.2 trillion. Despite organisations making great efforts to minimise the fallout from cybercrime, cyberattacks such as ransomware attacks, data breaches, phishing and cyber espionage are the biggest threats in the business sector ahead of inflation, energy crises and supply chain disruptions.

To capitalise on this growth opportunity, cyber underwriters must possess a deep understanding of their risk portfolio and have access to detailed insights of both risk exposures and market pricing.

This report offers a deeper understanding of the opportunities that the cyber insurance market presents and technologies available to support the cyber underwriter. With commentary from key industry experts such as Guy Carpenter, Beazley, Wall Street Journal and Munich Re.