The total commercial cyber liability market will reach $6.2 billion in written premium by 2020 after annual growth rates of 20-30 percent, Verisk predicts in a market analysis.
“Cyber liability risk is rapidly permeating every business that has any dependence on digital technology, which means very few enterprises are exempt,” Maroun Mourad, president of commercial lines at Verisk’s ISO business, said in prepared remarks. “We see rapid growth being powered by gains in small and midsize accounts as the market matures.”
Prashant Pai, vice president of cyber offerings at Verisk, added that rapid growth in commercial cyber liability comes as cyber attacks rapidly evolve and change, leaving certain industries more likely to buy cyber insurance.
“Finding and sizing those opportunities will be critical for insurers as they look to capitalize on their efforts in this rapidly growing market,” Pai said.
Verisk projects that standalone commercial cyber liability market will break down the following way in 2020:
- Small commercial (less than $10 million in revenue): $260 million in direct written premium. Companies in this market sector will grow from 96,800 in 2016 to 242,000 in 2020.
- Middle markets ($10 million-$250 million in revenue): $2.46 billion in direct written premium. The prediction is companies in this market segment will surpass 83,300 versus 43,200 in 2016.
- National accounts ($250 million or higher in revenue): $1.43 billion in direct written premium. There will be 9,400 companies in this segment in 2020 compared to 6,000 in 2016.
Market projections are from ISO MarketStance – Commercial Insight. The analysis applies exposure, growth and insurance-specific measures to individual businesses, consuming data from dozens of sources to build market information from the bottom up. It also estimates the market size of standalone cyber policies and cyber as part of commercial package policies.
The full report is “Sizing the Standalone Commercial Cyber Insurance Market.”