Despite cyber premium growth slowing in the past two years, Munich Re has suggested that global premium volume will more than double by 2030, growing at an average annual growth rate of more than 10%.
According to estimates by the reinsurer, the global cyber insurance market premium totaled $15.3 billion in 2024.
“This corresponds to less than 1% of the global premium volume for Property and Casualty insurance in 2024, which underscores the enormous potential for the insurance industry going forward,” Munich Re said.
The reinsurer found that North America was the largest cyber insurance market in 2024, with total premiums of $10.6 billion, representing 69% of global premiums.
Meanwhile, Europe’s total premiums for the year reached $3.3 billion, accounting for 21% of the global market.
As per Munich Re, large corporations make up the majority of cyber insurance premiums, while small and medium-sized enterprises often manage their cyber risks independently or lack sufficient awareness of their exposure to seek adequate coverage.
Still, the reinsurer expects cyber insurance to remain one of the most rapidly growing sub-sectors of the global insurance market, anticipating it to reach $16.3 billion in premiums by 2025.
“The capability of the cyber insurance industry, driven especially by knowledge and commitment of the reinsurance segment, to provide sophisticated risk modelling and stable capacity will remain one of the key pillars for the overall development of the market,” Munich Re noted.
The reinsurer continued, “Good judgment and discipline are mandatory for all players in the face of the enormous loss potential. Studies show that the modeled accumulation potential for the global industry (with a return period of up to 200 years) is currently estimated at between $20-46 billion. Guesstimates of the global cybercrime costs are in an even higher range: from $1-9.5 trillion by 2024.”
The post Global cyber premium to more than double by 2030: Munich Re appeared first on ReinsuranceNe.ws.