Munich Re said in a recent report it expects the global cyber insurance marke
t to reach about $16.3 billion gross premiums in 2025, with continued growth that will h
ave the market at more than $32 billion in 2023.
In “Cyber Insurance – Risks and Trends 2025,” Munich Re estimated the glob
al cyber insurance market at about $15.3 billion in 2024—less than 1% of global premium for the property/casualty insurance
industry. Although cyber premium growth slowed in recent years, Munich Re sai
d rising awareness of both cyber risks and insurance solutions will double gross pr
emiums by 2030 at an average annual growth rate of over 10%.
“As digitalization advances, cyber protection against one of the biggest threat
s to economy and society is becoming more and more important,” Thomas Blunck, CEO Reinsurance, said in the report. “And yet, a large num
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ber of organizations lack ade
quate safeguards and coverage. Munich Re strives to reach the still un- and under
insured. We aim to increase cyber resilience and progressively close a critical protection gap.”
Munich Re said a pillar of a maturing and stable cyber insurance industry, with
support of the reinsurance segment, will be its continued ability to provide sophisticated risk modelling and stable capacity.
“Studies show that the modeled accumulation potential for the global industry (with a return period of up to 200 years) is currently estim
ated at between $20 billion and $46 billion,” according to M
unich Re. “Guesstimates of the global cybercrime costs are in an even higher range: from $1 trillion to $9.5 trillion by 2024.”
A large majority of risks remain uninsured, but more businesses are increasin
gly becoming aware of the risks and taking steps to improve cybersecurity and buy insurance.
North America held about 69% of global premiums in 2024, with Europe at 21%. Munich Re said large companies are often the
buyers of cyber insurance, which small- or medium-sized businesses “largely bear their cyber risks independently or simply lack sufficient awareness of the exposure to prompt them to buy adequate cyber insurance.”