U.S. Businesses Increase Cyber Insurance Amid IoT, Remote Work Expansion

As cyber threats rise, global cyber insurance premiums could hit $23 billion by 2025, and U.S. businesses are expected to shoulder over half of that cost.
By: | February 7, 2024

Global cyber insurance premiums could reach $23 billion by 2025 — and U.S. businesses are expected to pay more than half of that sum — as the threat of data breaches and cyberattacks intensifies and insurers improve policy clarity, according to the Insurance Information Institute’s (Triple-I) latest Issues Brief.

Triple-I predicts that, as global direct written premiums for cyber insurance approach $23 billion by 2025, U.S. businesses will contribute about 56% of this total. This trend is driven by the increasing threat of data breaches and cyberattacks, as well as the improvements made by insurers in clarifying policy coverage and exclusions.

U.S. businesses, the main buyers of stand-alone cyber insurance policies, are more exposed to these threats due to their reliance on internet of things (IoT) technologies, remote work and cloud data storage. Stand-alone cyber insurance policies can cover costs not included in general liability insurance, such as legal fees, repairing digital infrastructure, and restoring client and proprietary data.

The global cyber insurance market tripled in volume in the five years ending in 2022, ultimately reaching an estimated $13 billion in direct written premiums. &

The R&I Editorial Team can be reached at [email protected].

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