Though cyber risk is a distinctly global threat, the cyber insurance markets in the US and the EU have developed in different directions both in terms of products and pricing. This has consequences for players that are eager to take advantage of the significant growth potential of this line of business, as Intelligent Insurer discovers.
The cyber threat knows no boundaries. Viruses or other forms of attack travel quickly, harming companies and individuals globally. But while the impact on businesses and individuals may be similar, independent of jurisdiction, different regulatory regimes mean that the products and services available to mitigate and manage such attacks differ markedly.
Despite these inconsistencies, the opportunity for growth for insurers is significant. With increasing digitisation and connectivity, cyber insurance demand is poised for growth. The cyber security insurance market is expected to reach $17.55 billion in 2023, up from $4.52 billion in 2017, registering a compound annual growth rate (CAGR) of 25.4 percent during the forecast period, according to the Global Cyber Security Insurance Market 2018-2023 report by Orbis Research.
A rise in cyber data breaches and increasing adoption of cloud-based services are just some of the factors driving the growth of cyber security insurance market, the report noted.
Cyber, Insurance, Reinsurance, Elizabeth Queen, Jamie Bouloux, Martin Kreuzer, US, EU