Commercial cyber liability premium to reach $6.2bn by 2020: Verisk
The written premium for the commercial cyber liability market is estimated to reach $6.2 billion by 2020 with annual take-up rates growing 20 to 30 percent during the next years, according to a report by data analytics provider Verisk.
"Almost daily, revelations of cyber breaches in healthcare and education underscore the importance of cyber coverage for these markets," said Maroun Mourad, president of commercial lines at Verisk's ISO business. "Cyber liability risk is rapidly permeating every business that has any dependence on digital technology-which means very few enterprises are exempt. We see rapid growth being powered by gains in small and midsize accounts as the market matures."
Verisk's analysis estimates the market size of stand-alone cyber policies and cyber as part of commercial package policies.
Prashant Pai, vice president of cyber offerings at Verisk, said: "The types and targets of cyberattacks are changing frequently, causing certain industries to be more likely to buy cyber insurance. Finding and seizing those opportunities will be critical for insurers as they look to capitalize on their efforts in this rapidly growing market."
Frederick (Fritz) Yohn, managing director at Verisk's ISO business and head of ISO MarketStance solutions, added: "One challenge in seizing the cyber market is defining what's being measured. What businesses are included, what's the baseline, what other factors are influencing estimates? Our bottom-up methodology has been proven in sizing other emerging markets. We now provide a vital tool to help insurers identify the most promising opportunities in cyber liability."
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