Business are estimated to lose a staggering $400bn this upcoming year due to cyber attacks. And 60% of business leaders recognize cyber attacks as a threat to growth. As a result of this continued explosion of Internet crime, industry experts expect the cyber insurance to triple by 2020, generating $7.5bn in annual premiums. As carriers struggle to price this uncertain risk, the market will be open to disruptors who can aggressively understand and price it.
If the recent headlines tell us anything, it’s that cybercrime pays. Cybercriminals are reportedly racking up billions of dollars each year from the crimes they commit, while businesses are estimated to lose roughly $400 billion a year due to cyber hacks and attacks. With the stakes this high, it’s no wonder the business of cyber insurance is seeing a surge. According to a report issued by PricewaterhouseCoopers today (Sept. 14), the cyber insurance market is expected to reach $7.5 billion in annual premiums by the end of 2020 and at least $5 billion by 2018. The “Insurance 2020 & beyond: Reaping the dividends of cyber resilience” report also stated the market is primed for disruption from those seeking to capitalize on the cybersecurity opportunity.