Priya Patel
TLDR:
Key Points:
- Cyber insurance market poised for growth as cyberattacks increase.
- New entrants in the market may lead to a decrease in insurance premiums.
Moody’s Ratings: Cyber Insurance Competition Up, Prices Down
The cyber insurance market is expected to grow significantly in the coming years due to the rise in cyberattacks. New players entering the market may result in a moderate decrease in insurance premiums, following several years of rate increases. Munich Reinsurance Company found that about 87% of C-level decision-makers across 15 countries feel inadequately protected against online threats, indicating a strong demand for cyber insurance offerings. The global cyber insurance market is projected to reach around $29 billion by 2027, according to Munich Re. With risks like ransomware, business email compromise, and data theft driving losses, insurers are stepping up coverage, but challenges remain in accurately predicting and addressing large-scale attacks or outages. Overall, the cyber insurance market is yet to mature, leading to variations in policy language and coverage across the industry.
