Cyber insurance is entering a “new phase of development”, according to a report from Howden, which projects global premium will more than double by 2030.

The broker’s fourth annual cyber report says stable market conditions and robust risk controls – despite increases in attacks and concerns over new generative artificial intelligence – are critical indicators for the predicted boom.

Howden UK’s cyber retail head Sarah Neild says “favourable dynamics” have helped the cost of insurance reduce by more than 15% since 2022. 

“At no other point has the market experienced the current mix of conditions: a heightened threat landscape combined with a stable insurance market underpinned by robust risk controls,” she said.

“The foundations for a mature cyber market, with innovation and exposure-led growth at its core, are now in place.”

Howden says growth will be driven by expansion outside the US, which accounts for about two-thirds of the global market, with European and Asia-Pacific organisations expected to increase their presence.

The report forecasts global cyber premium will reach $US43 billion ($64.46 billion) by 2030, up from $US15 billion ($22.41 billion) this year, with 54% of the growth driven by non-US markets.

“Cyber insurance is key to strengthening resilience around the world and insurers are now in a strong position to bring about real change,” Howden international cyber head Jean Bayon de La Tour said. 

“This involves providing more capacity to meet pent-up demand in currently underpenetrated regions, including Europe, Latin America and Asia, areas where Howden is investing strongly.” 

The report says strengthened cyber protections are a key factor in the optimism, despite an 18% increase in ransomware attacks this year compared with last.

The broker says its data presents a “more nuanced picture on the severity front”, with recovery costs increasing but fewer companies forced to pay ransoms, due to effective risk controls.

It adds the “prospects for cyber insurance are strong, supported by a growing and increasingly diverse capital base”, and “sustaining capital inflows will be crucial as the market moves beyond existing premium pools to meet the growing demands of businesses worldwide”.

Click here for the report.

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