The global cyber insurance market will triple in size to $US20.6 billion ($27.47 billion) in annual gross written premium (GWP) by 2025, GlobalData says.

The market jumped by a third last year to $US7 billion ($9.33 billion) as staff working from home increased cyber risks. GlobalData says the growth rate is set to remain high, forecasting a 27% jump this year.

Analyst Ben Carey-Evans says the need for robust cybersecurity and cyber insurance is becoming apparent to businesses of all types and sizes as the frequency and severity of cyberattacks continues to rise.

“Despite lower cover limits and increasing premiums, we expect the cyber insurance market to see continual strong year-on-year growth up to 2025,” he said.

In recent years, this insurance offer expanded rapidly, with customers enjoying high coverage limits, flat rates and abundant capacity as insurers sought to capture business in a highly competitive market.

COVID-19 brought a permanent shift in the way businesses and consumers operate, Mr Carey-Evans says, with remote working practices set to stay and digital channels seeing more use than before the pandemic.

In coming years, a lasting shift in behaviour from the pandemic will push demand for both commercial cyber insurance, and to a lesser extent personal cyber insurance, GlobalData says.