Cybersecurity Insurance Market: Rising Premium Prices As per the National Association of Insurance Commissioners, the reported direct written premiums for cyber package policies added up to $1.69 billion in 2021, a 47.6% increase from 2020. This is primarily attributed to surging ransomware activities. Consequently, cyber risk has become a critical concern for public entities and organizations worldwide. As per Inkwood Research, the global cybersecurity insurance market is set to project a CAGR of 19.58% and reach $xx million by 2032. Similarly, according to the Federal Bureau of Investigation’s 2021 Internet Crime Report, the Internet Crime Complaint Center (IC3) received 3,729 ransomware complaints with adjusted losses of over $49.2 million. Cybersecurity insurance, a rapidly expanding sector within the broader insurance industry, is characterized by the provision of policies that offer financial protection and risk mitigation to organizations in the event of cyberattacks, data breaches, and other cybersecurity incidents.
Overall, the global cybersecurity insurance market encompasses coverage for losses and liabilities arising from data breaches, cyber incidents, and related issues.
Why are Cyber Insurance Premium Prices Soaring? Companies are increasingly insulating themselves against mounting cyber incidents. So much so that cyber threats’ prevalence is making businesses reconsider their decision to partner with companies that have no comprehensive cyber insurance. Further, the decreasing carrier appetite for risks and rising demand for coverage are among the main drivers of increased premium prices. Besides, there is a huge demand for cyber coverage anyway, given the surging awareness about cyber threat risks for businesses of all sizes.