Cyber insurance will enjoy fastest growth: Aon Inpoint
A series of commercial global P&C insurance market reports from Aon Inpoint, Aon’s data, analytics, engagement and consulting team, found that, by 2021, the most rapid growth of premiums will be seen in cyber insurance products.
In addition, the financial institutions, mining and minerals, and technology and media sectors are expected to expand rapidly in comparison to other industry segments. Aon’s series of global studies looked at insurance purchased by corporate, public sector and not-for-profit organizations between 2013 and 2017 and forecasted trends into 2021.
Over the past five years, cyber premiums saw the most significant growth at 23 percent annually and by 2021, Aon predicts that worldwide premiums will be worth $4 billion, a compound annual growth rate of 14.1 percent.
“As we look ahead, we are seeing a broad shift of companies putting a greater value on intangible assets, such as cyber and intellectual property,” said Michael Moran, CEO of Aon Inpoint. “There are multiple reasons for the increased focus and increased premiums ranging from financial statement protection due to a business interruption to the constantly evolving global regulatory environment including the European Union’s General Data Protection Regulation.”
Across all types of commercial P&C insurance, the manufacturing segment generated the highest premiums worldwide in 2017, worth approximately $111 billion. Following manufacturing came agriculture, fishing and forestry at $72 billion, boosted by the huge value of this segment in China and the US While manufacturing will remain strong, premiums bought by financial institutions, the mining and minerals sector, and technology and media firms are expected to increase most rapidly through to 2021 with an annual growth rate of around 6 percent in each case.
The report also found that global commercial P&C premiums were worth approximately $730 billion in 2017 and by 2021 will rise to almost $900 billion; within this, US commercial P&C insurance premiums were worth $274.5 billion in 2017 and are forecast to rise to $331.5 billion in 2021.
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