Security News > 2023 > August > Cybersecurity insurance is missing the risk

Cybersecurity insurance is a rapidly growing market, swelling from approximately $13B in 2022 to an estimated $84B in 2030, but insurers are struggling with quantifying the potential risks of offering this type of insurance.

Cyber attackers escalate and adapt quickly, which undermines the historical-based models that insurance companies rely on.

At maximum, they want a 70% loss ratio to cover their payouts and expenses and, according to the National Association of Insurance Commissioners Report on the Cyber Insurance Market in 2021, nearly half of the top 20 insurers, representing 83% of the market, failed to achieve the desired loss ratio.

In Q4 2021 the renewals for premiums were up a staggering 34%. In Q4 2022 premiums continued to rise an additional 15%. There are concerns that many customers will be priced out of the market and the insurance industry and left without a means of transferring risk.

The goal would be to develop a unified standard for qualifying for cyber insurance that would adapt to the rapid changes in the cyber landscape.

The next generation of cyber insurance will rise on the foundations of new risk analysis methodologies to be more accurate and sustain the mutual benefits offered by the insurance industry.

News URL

https://www.helpnetsecurity.com/2023/08/25/cyber-insurance-industry/