The cyber insurance market is projected to reach $21.67 billion in 2025 after peaking at roughly $17.77 billion in 2024.
By 2027, the market is predicted to reach $29 billion, according to Security.org, while accounting for approximately 75% of total premiums. At the same time, personal cyber insurance is growing as individuals become more aware of identity theft and online fraud risks.
“The cyber insurance market is ever changing with new insurance companies entering the market and others departing,” said Arthur Armstrong, a partner in Reed Smith’s insurance recovery group.
“Likewise, policy forms are continuously evolving to address new and different cyber risks,” he added. “Unfortunately, this has led to more exclusions and sublimits that negatively affect cyber coverage overall. A policyholder should work with an experienced broker to ensure that it is obtaining appropriate coverage with respect to scope and available policy limits.”
Cybercrime by the numbers, according to Security.org:
- Ransomware hits record highs. In 2024, ransomware was involved in 44% of all breaches and 75% of system-intrusion breaches.
- Cybercrime reports surge. The FBI’s Internet Crime Complaint Center (IC3) received over 880,000 complaints in 2023, with reported losses exceeding $12.5 billion – a 22% increase from the previous year.
- Data breaches expose billions. In 2023 alone, data breaches compromised nearly 350 million victims, marking a 72% increase from the previous all-time high. The healthcare sector faced the highest number of breaches.
- Identity fraud devastates victims. Identity fraud caused $23 billion in losses in 2023. The average victim spent 10 hours resolving identity fraud issues.
- Cyber-attacks are the most common: For those that are slightly to somewhat familiar with cyber insurance, 70% have experienced a cyber-attack, followed by identity theft at 69%, cyberbullying at 64% and cyber extortion at 69%.
The slideshow above illustrates tips for keeping mobile devices safe, compiled from an array of sources.
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