2015 will be remembered as the year the Cyber insurance marketbegan to really take shape. The market remains robust and continuesto present for insurers opportunities for unprecedented growth.However, the market conditions for large and small to medium-sizeenterprises differs greatly. That is because, in part, insurers aretargeting small and mid-size enterprises as highly profitable. 2015will also be remembered as the year data breach coverage disputesunder stand-alone cyberinsurance policies began to leak into thecourts. This article will address these trends of continued, albeitsegmented, market growth and cyber-coverage litigation and whetherwe can expect them to continue in 2016.

An insatiable demand for Cyber insurance

We have continued to see in 2015 once-in-a-lifetime growth inthe insurance market, driven almost exclusively by Cyber insurance.And, growth trends are showing no signs of slowing. According to asurvey conducted by RIMS, 74 percent of those without Cyberinsurance are planning on buying it within the next one to twoyears. Likewise, total annual premiums for stand-alone Cyberinsurance are projected to grow to $20 billion by 2025. This growthstems, in part, from increased awareness of the importance offirst-party Cyber coverage and business interruption risks fromdata breaches.