Cyber insurance premiums to grow at least 20% annually to over $20 billion in 10 years - AGCS

Source: Middle East Insurance Review | Oct 2015

With less than 10% of companies currently purchasing cyber-specific policies, cyber insurance premiums will grow globally from $2 billion per annum today to over $20 billion over the next decade, a compound annual growth rate of over 20%, said Allianz Global Corporate & Specialty (AGCS) in a report.

It added that cyber crime is costing the global economy approximately US$445 billion a year, with the world’s 10 largest economies accounting for half of this cost.

“As recently as 15 years ago, cyber-attacks were fairly rudimentary and typically the work of hacktivists, but with increasing interconnectivity, globalisation and the commercialisation of cyber-crime there has been an explosion in both frequency and severity of cyber-attacks,” said AGCS CEO Chris Fischer Hirs. “Cyber insurance is no replacement for robust IT security but it creates a second line of defense to mitigate cyber incidents.”

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