In wake of the July 2024 global IT outage, the business interruption insurance market is on pace to double over the next seven years.
The market peaked at roughly $15.2 billion in 2024 and is predicted to reach $33.61 billion by 2032 with a compound annual growth rate of 8.7% during the forecast period, according to Market Research Future.
Key market drivers include the financial impact of business interruptions, advancements in insurance technology and the increasing sophistication of risk management practices.
Meanwhile, more than 8.5 million Microsoft Windows devices were affected worldwide by the July 19, 2024 CrowdStrike update error, which subsequently interrupted hospital systems and media outlets, booted banks offline, delayed thousands of flights and disrupted routine tasks and daily business transactions.
Typical cyber insurance coverage may not have been triggered because the event was not a malicious attack, Peter McMurtrie, a partner in West Monroe's insurance vertical, told PropertyCasualty360.com in August 2024.
"Where coverage did exist, things like deductible size, waiting period and coverage limits factor in the amount of exposure," he said. "Standard small business owners' policies were less likely to have coverage, while more complex policies for middle market and fortune 500 companies may have had broader coverage triggers for non-malicious outages caused by third party software issues."
The initial effects of the outage were similar across large and small businesses, with variances based on the ability to recover operations and if insurance protection would cover the loss of business income during the outage period.
The slideshow above illustrates 10 business preparedness tips as selected by Steve Leasure, vice president of operations at Rainbow Restoration.
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