Cyber risk insurance: demand outweighs supply

Munich Re has estimated the volume of the cyber risks insurance market at 9.2 billion USD in 2022. It could reach 22 billion USD in 2025 according to the reinsurer.

Despite a growing demand, the cyber risk insurance market is going through a turbulent period due to the increasing frequency and intensi-ty of cyber attacks. Other factors, such as the shift to all-digital and the cloud, reveal the gap between insurance needs and market capacity.

2021 confirmed the popularity of cyber insurance with a 21% increase in companies to underwrite a policy. The challenge, however, is find-ing the capacity to meet demand in an environment marked by high risk exposure according to the reinsurer.

A reluctance to cover certain cyber risks has also emerged among insurers since the beginning of the Russian-Ukrainian conflict following the series of cyber attacks launched by the belligerents against strategic targets.