The global cyber insurance market is on track for significant growth, according to a recent report from Munich Re. The company predicts that by 2025, the market will reach around $16.3 billion in gross premiums. This growth is expected to continue, with projections indicating that the market could exceed $32 billion by 2030.
In their report titled “Cyber Insurance – Risks and Trends 2025,” Munich Re estimates the market will be valued at approximately $15.3 billion in 2024. While this figure represents less than 1% of the total global premiums for property and casualty insurance, the company believes that awareness of cyber risks and available insurance solutions will drive growth. They anticipate a doubling of gross premiums by 2030, with an average annual growth rate of over 10%.
Thomas Blunck, CEO of Reinsurance at Munich Re, emphasized the growing importance of cyber protection as digitalization progresses. He noted that many organizations still lack adequate safeguards and coverage, highlighting a critical protection gap that needs to be addressed. Munich Re aims to reach those who are underinsured and help improve overall cyber resilience.
The report also highlights the estimated potential losses from cyber incidents, which range from $20 billion to $46 billion for the global insurance industry. The costs associated with cybercrime are even more staggering, with estimates suggesting they could reach between $1 trillion and $9.5 trillion by 2024.
Currently, North America dominates the cyber insurance market, accounting for about 69% of global premiums, while Europe holds around 21%. Larger companies are typically the primary purchasers of cyber insurance, while many small and medium-sized businesses either manage their cyber risks independently or lack awareness of their exposure.
As more businesses recognize the importance of cybersecurity, the demand for insurance is likely to increase. This trend reflects a growing understanding of the risks posed by cyber threats and the need for adequate coverage in an increasingly digital world.