Global cyber insurance market set to hit at least $90 billion in the next decade

According to an analysis by Market.US, the global cyber insurance market is projected to be worth US$90.6 billion by 2033, growing at a compound annual growth rate (CAGR) of 22.3% from 2023. The industry is expected to reach $14.8 billion by the end of 2024, which marks a significant rise from a projected valuation of $12.1 billion in 2023.

Dr Ilia Kolochenko, CEO and Chief Architect at ImmuniWeb and Adjunct Professor of Cybersecurity and Cyber Law at Capitol Technology University, commented: “Behind the beautiful façade of the rapid market growth, consumers of cyber insurance increasingly face unpleasant surprises and disappointment. One of the most frequent pitfalls are creative and oftentimes inconspicuous … exclusions and exemptions from insurance coverage under various pretexts, ranging from insurees’ own negligence to complex questions of international law and cyber war.”

Most companies fail to protect their employees from cybercrime while travelling. To ensure avoidance of common problems, Kolochenko put forth that “insurees should read both their insurance contracts and any annexes thereto, inviting both their lawyers and technical teams to thoroughly review the documents. Hiring an external law firm which specialises in cyber insurance and cyber law can also help insurees to secure the best rates and highest level of coverage.”

Kolochenko concluded that while it isn’t a cure-all, for a great number of industries, a well-scoped cyber insurance policy can significantly help breached companies to avoid catastrophic damages in the aftermath of being hacked.