Those fighting cybercrime and those who insure against it must perpetually race to keep up with the new tech, strategies, methods a
nd goals thrown at them by nefarious actors working from all over the world.
After significant compound rate increases in 2021 and 2022, the cyber insuranc
e market stabilized in 2023, with some areas experiencing slight softening as the market continued to adjust throughout 2024,
according to Guy Carpenter’s new report, “Behind the Firewall: 2024 Global Cyber Industry Insights.”
The global cyber market is estimated to be worth $16.6 billion in 2024, with North America accounting for $10.5 billion, Europe for $3.9
billion, the Asia-Pacific region for $1.7 billion and the rest of the world for $0.5 billion. Growth is driven by under-penetrated industrie
s, developing regions, and new product offerings along with increased awareness of cyber risks and a growing reliance on technology.
North America leads in premium share and dominates in IT sector premiums,
as the U.S. is home to nearly 70% of the world’s largest IT firms. The recent slower growth of premiums in the U.S. is a sign of market
maturity rather than a lack of interest. In general, most coverages are offered acros
s policies with limited restrictions on items like contingent business interruption (CBI) and ransomware.
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While growth in North America is slowing, Europe and the Asia-Pacific (AP
AC) regions are heating up. Rapid growth in these areas benefits global reinsurers by diversifying risk and unlocking capacity in new
markets. Insurtechs and SME-focused carriers that have found success in the U.S. are expanding to capitalize on this growth.
However, growth in these regions could contribute to aggregated losses with a wide range of potential modeled outcomes. F
or 2024, the modeled global aggregation loss potential is estimated to range from $20 billion to $46 billion at a 1-in-200-year return period, suggesting a market loss ratio between 120% and 277%.