Global Cyber Insurance Market Set for Major Growth by 2030

The global cyber insurance market is poised for significant growth, according to Howden's latest report, "Risk, Resilience, and Relevance." This comprehensive analysis highlights a stabilized market and underscores the pivotal role of enhanced cyber hygiene practices in achieving price stability and consistent coverage.

Key Insights from Howden's Report

Howden’s report indicates a notable market stabilization in 2023, driven by improved cyber hygiene following a surge in ransomware claims during 2020 and 2021. This stabilization has set the stage for substantial market growth.

The report focuses on the global cyber insurance market, with particular attention to major regions such as the US, Europe, Latin America, and Asia. Insurers, brokers, and SMEs are key stakeholders impacted by these developments. The data reflects market conditions and trends observed over the past two years, with projections extending to 2030.

Cyber insurance is crucial for managing the increasing risks associated with cyber threats. As the market expands and stabilizes, businesses can expect better coverage options, clearer terms, and more competitive pricing. This growth is particularly significant for SMEs and underpenetrated regions, offering new opportunities for risk mitigation and resilience.

Global Premium Projections and Regional Growth

Howden projects that the global cyber insurance market will reach USD 43 billion by 2030. While the US currently holds two-thirds of the market share, more than half of future growth is expected to come from non-US markets. Major European economies like Germany, France, Italy, and Spain, along with regions in Latin America and Asia, are poised for substantial premium increases.

Fostering Innovation and Market Responsiveness

Spearheading this growth, Howden and insurers are innovating with new platforms and solutions tailored for SMEs, enabling quick and easy access to cyber coverages. This innovation not only drives growth but also enhances the market’s ability to respond to evolving cyber threats.

Quotes from Industry Leaders

Sarah Neild, Head of Cyber Retail, UK, Howden, states, “At no other point has the market experienced the current mix of conditions: a heightened threat landscape combined with a stable insurance market underpinned by robust risk controls.”

Jean Bayon de La Tour, Head of Cyber, International, Howden, adds, “Cyber insurance is key to strengthening resilience around the world and insurers are now in a strong position to bring about real change.”