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ARTICLE · 28 OCTOBER 2019

Cyber Insurance: What Is It Good For?

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Cyber insurance is a relatively new area for both companies and insurers. In the past, it has suffered from a lack of understanding. In a 2016 PwC survey

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Cyber insurance is a relatively new area for both companies and insurers. In the past, it has suffered from a lack of understanding. In a 2016 PwC survey of specialist insurance companies, around half of respondents confirmed they did not actively pursue cyber due to the perceived complexity of the risks and the limited experience of cyber losses preventing confident underwriting1.

In the last five years, cyber security incidents have increased by 67%, with the average cost of cybercrime to organisations increasing to US$13 million2. While cyber risks may be challenging for insurers to underwrite, they are driving a rapid growth in demand for cyber insurance products. This has made cyber one of the most promising areas of growth and innovation in the insurance market. The cyber insurance market is forecast to grow 33.8% annually in the next five years, expanding from US$2.9 billion in 2019 to reach US$16.7 billion by 20243. Given the scale of this opportunity,

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