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Cyber Insurance - Thematic Intelligence

Publisher GlobalData
Published May 16, 2023
Length 65 Pages
SKU # GBDT17999345

Description

Cyber Insurance - Thematic Intelligence


Summary

Cyber insurance provides cover against first- and third-party financial losses arising from damage to, or loss of data from, IT systems. GlobalData estimates the global cyber insurance market size to be $16.7 billion in gross written premiums (GWP) in 2022. Significant growth in 2020 and 2021 was largely due to substantially raised premiums. After the pre-pandemic years – characterized by high coverage limits, flat rates, and abundant capacity – the cyber market has hardened considerably. The frequency and severity of cyberattacks, coupled with economy-wide shifts to remote working, caused insurers to raise prices at these rapid rates. We forecast the global cyber insurance market to be worth $33.4 billion in GWP in 2027, recording a compound annual growth rate of 14.9% over 2022–27.

Cyber risks are growing for SMEs of all sizes. According to GlobalData’s 2022 UK SME Insurance Survey, almost 50% of medium-sized firms said that their cyber risk has, to some extent, grown since the onset of COVID-19. While the pandemic has raised the cyber risks most businesses face, it has also increased the likelihood that many SMEs will purchase cyber insurance. Indeed, over a quarter of UK SMEs indicated that they purchased cyber as a result of increased remote working due to the pandemic. While many businesses clearly understand the risks and need for cyber insurance, others still lag behind. These are the customers that brokers and other intermediaries should target to grow the line further. The tough economic climate may hold some businesses back from making the purchase right now. But as economies return to growth, the cyber line looks set to receive strong demand going forward.

Scope
  • According to the National Association of Insurance Commissioners (NAIC), Chubb was the largest cyber insurer in the US in 2021, reporting $473.1 million in direct written premiums and a 9.8% market share.
  • Over a quarter of UK SMEs indicated that they purchased cyber as a result of increased remote working due to the pandemic.
  • The personal cyber insurance market is considerably smaller than the commercial one, but the product is slowly becoming more popular. In GlobalData’s 2022 UK Insurance Consumer Survey, 5.9% of respondents indicated that they owned a personal cyber insurance policy.
Reasons to Buy
  • Determine market size and key growth opportunities in the global cyber insurance landscape.
  • Benchmark yourself against the leaders in the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the market.
  • Be prepared for how regulation will impact the cyber insurance market over the next few years.

Table of Contents

65 Pages
Executive Summary
Players
Thematic Briefing
The cyber risks faced by businesses are wide-ranging
The cybersecurity and cyberattack landscape
Large businesses and critical industries are most likely to be targeted for cyberattacks
Poor employee practice and awareness are the primary reasons for cyber breaches
Ransomware costs are significant, but more companies are refusing to pay
Data is a valuable commodity to business, but the cost of a breach is enormous
Trends
Technology trends
Macroeconomic trends
Regulatory trends
Industry Analysis
Market size and growth forecasts
Chubb, Fairfax, and AXA are among the leading cyber insurers in the world
The UK cyber insurance market dynamics
Uptake by SMEs has been variable over time and depends on business size
The pandemic caused policy cancellations, but cyber risks have steadily increased
Remote working, media reports, and intermediary advice are key purchase triggers
Many SMEs forego cyber cover as they underestimate the risks their business faces
Personal cyber insurance will grow as younger consumers come into enough wealth
Timeline
Signals
M&A trends
Venture financing trends
Company filing trends
Value Chain
Product development
Marketing and distribution
Underwriting and risk profiling
Claims management
Customer service
Companies
Public companies
Private companies
Sector Scorecards
Non-life insurance sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Glossary
Further Reading
GlobalData reports
Our Thematic Research Methodology
About GlobalData
Contact Us
List of Tables
Table 1: Four main types of threat actors – thieves, hacktivists, terrorists, and other malicious players.
Table 2: Percentage of UK businesses reporting a cyberattack, by business size, 2018–2022
Table 3: Technology trends
Table 4: Macroeconomic trends
Table 5: Regulatory trends
Table 6: M&A trends
Table 7: Venture financing trends
Table 8: Public companies
Table 9: Private companies
Table 10: Glossary
Table 11: GlobalData reports
List of Figures
Figure 1: Who are the leading players in the cyber insurance theme and where do they sit in the value chain?
Figure 2: TMT, financial services, and energy are three of the most targeted sectors by cybercriminals
Figure 3: Phishing emails are comfortably the most frequently cited reason for cybersecurity emails
Figure 4: Ransomware remediation costs in 2022 were highest in Belgium in 2022
Figure 5: The digital unit scale
Figure 6: The average cost of a data breach in the healthcare industry exceeds $10 million
Figure 7: We estimate that the global cyber insurance market was worth $16.7 billion in 2022
Figure 8: Chubb is the largest cyber insurer in the US, with a 9.8% market share and DWP of $473.1 million
Figure 9: AXA is the most popular8 cyber insurance provider in the UK
Figure 10: Over 50% of UK medium enterprises have cyber cover in place
Figure 11: Just over 2% of companies have canceled their cyber policies due to COVID-19
Figure 12: Over a third of UK SMEs canceled their cyber insurance policy as a cost-saving measure
Figure 13: Many SMEs are acutely aware of the heightened cyber risk they face in the post-pandemic world
Figure 14: Remote working and media reports are key triggers for the purchase of cyber insurance for SMEs
Figure 15: 56.9% of cyber policyholders renewed their policy for higher premiums in 2022
Figure 16: Many companies do not believe they will be targeted by cyberattacks
Figure 17: COVID-19 has raised the possibility of some SMEs purchasing cyber insurance
Figure 18: There is strong interest among younger generations to purchase a personal cyber insurance product
Figure 19: Over 60% of consumers would want financial reimbursement as a feature of a personal cyber policy
Figure 20: The cyber insurance story
Figure 21: The number of cyber insurance mentions in insurance company filings has been increasing year-on-year
Figure 22: The insurance value chain
Figure 23: The cyber insurance value chain – product development
Figure 24: The cyber insurance value chain – marketing and distribution
Figure 25: The cyber insurance value chain – underwriting and risk profiling
Figure 26: Who does what in the non-life insurance space?
Figure 27: Thematic screen
Figure 28: Valuation screen
Figure 29: Risk screen
Figure 30: Our five-step approach for generating a sector scorecard

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