Kathmandu. Munich Re, the world’s largest reinsurer by business volume, had expected the global cyber insurance market to reach $16.3 billion by 2025.
Munich Re, the world’s largest reinsurer by business volume, had estimated the global cyber insurance market to total $15.3 billion by 2024. This would represent less than 1 percent of the global premium volume for property and casualty insurance in 2024. This figure highlights the huge future potential for cyber insurance in the insurance industry.
Although cyber insurance premium growth has slowed in the past two years, Munich Re experts expect global premium volumes to more than double by 2030, growing at an average annual growth rate of more than 10 percent.
According to Asia Insurance Post, cyber risk insurance has proven to be capable and efficient in sheltering the critical digital assets insured that are essential for the daily operations of organizations of all types and sizes, from micro, small or medium-sized businesses to large corporate enterprises.
The global insurance industry can face many extreme cyber risk scenarios. Risks arising from widespread malware attacks or large-scale outages of cloud service providers can appear at any time. Rapid, simultaneous risk changes due to technological, geopolitical and market-specific factors pose both challenges and opportunities for insurers.
The global cyber insurance market is maturing and stabilizing, according to Munich Re. This S&P Global Ratings assessment recognizes the solid profitability of risk-bearing in the past two years and its expected trajectory in 2025, despite the risks.
The insurance market offers reliable capacity for commercial and personal cyber insurance policies. Premium rate increases, which particularly promoted growth in 2021 and 2022, have now reached a stabilization stage.
