Cyber insurance is gaining attention again as cyberattacks continue to rise across Europe. Patricia Kocsondy, head of global cyber digital risks at Beazley, highlighted recent large-scale breaches affecting airports, major retailers, and even Jaguar Land Rover, which needed a £2 billion loan guarantee from the UK government to stay afloat. But she also noted a quieter wave of daily, less-visible cyber incidents that still carry serious insurance consequences and drive steady demand.
This steady rise in cyber risks has made cyber insurance one of the fastest-growing sectors in the market, expanding by 20 to 30 percent each year over the past decade. Forecasts suggest the market could exceed $30 billion by 2030. Despite this growth, the industry faces challenges. Kocsondy described the current cyber insurance landscape as “high stakes, high risk, high reward.” Losses are rising, threats are multiplying, and attacks are getting trickier to stop. Yet, surprisingly, insurance prices have dropped by more than 20 percent from their peak, squeezing insurers at a time when demand keeps climbing.
For many carriers, these conditions are tough. Kocsondy pointed out that insurers will have to rethink their strategies—deciding whether to partner up or continue fighting on the front lines alone. Beazley, which sees itself as a leader, is focusing heavily on carefully choosing the risks it covers and using technology to spot warning signs early. They combine external cybersecurity scans with internal data on claims and applications to get a clearer picture of where losses might happen.
Beazley’s full-spectrum cyber insurance includes services like preemptive scans, real-time threat alerts, and help with incident response through its own cybersecurity team. This setup lets them warn clients about weak spots before an attack hits. If an incident does happen, they support quick recovery to minimize damage. This proactive approach is becoming more important as companies look for real value behind cheaper policies.
New technology, especially artificial intelligence, is moving faster than insurance rules can keep up. Still, Kocsondy argues that the insurance industry is not falling behind. Companies like Beazley have dedicated research teams tracking new threats and alerting clients to new vulnerabilities—something still not common across the whole market. With prices converging, clients now decide based on the quality and service behind the policy, which often becomes clear only when a claim is filed.
Kocsondy also addressed a common misunderstanding: some believe companies must choose between investing in cybersecurity or buying insurance. She said it’s not an either/or situation. “It’s like having seatbelts and airbags—you still need car insurance,” she explained. In the end, cyber insurance and cybersecurity go hand in hand to keep businesses protected in today’s risky digital world.