Another report underscores the sheer financial scale of cyber-insurance, hardly surprising given the mass of attacks that have been reported in recent years. The stakes are high for the wealth management sector, of course, given how much money can be stolen.
Insurance against cybersecurity breaches is expected to hit $70.7 billion by 2030, equating to a 26.3 per cent compound annual growth rate over the coming 10-year period, highlighting how digital attacks are a major menace.
The figures come from a report by P&S Intelligence, adding to other forecasts about the economic impact of cybersecurity attacks and counter-measures. And the shift to working from home in much of the developed world because of the pandemic has arguably ratcheted up the risks.
In May this year Allied Market Research said that the cyber-linked insurance market should reach $28.6 billion by 2026, rising from $4.85 billion in 2018.
Cybersecurity insurance has been growing as a sector for some time. Prominent players in this area include American International Group; Munich Re, Zurich; Lockton Companies; Aon; AXA; Berkshire Hathway; Allianz; Lloyd's of London, and The Chubb Corporation.
“Since most cyberattacks are carried out for money, banking, financial services, and insurance (BFSI) companies are the most significant end users of cyber insurance. With time, much of customers' financial data has gone digital, which has made it easier for miscreants to steal it,” P&S Intelligence said.