Cyber Insurance Data & Statistics For 2023 & Beyond
Posted in Statistics last updated on January 3, 2023
The cyber insurance market is exploding rapidly with the growth of cryptocurrency and other blockchain technologies.
In fact, the cyber insurance market is expected to grow at a CAGR or over 25% for the next 5 years.
This article will cover all of the most up-to-date cyber insurance statistics.
Table Of Contents
- Key Stats
- Cyber Insurance Market
- Cyber Insurance Premiums
- Cyber Insurance Loss Ratio
- Cyber Insurance Market Share
- Cyber Insurance Claims
- Cyber Data Breaches
- Cyber Insurance Cost
Key Cyber Insurance Stats
- Cyber insurance premiums have jumped 50-100% as attacks and claims made have ramped up.
- The average ransom demand was $1.2 million in 2021.
- The share of organizations who purchase cyber insurance has jumped to over 75% globally.
Sources: Statista, CoalitionInc, TechTarget
Cyber Insurance Market
- Driven primarily by an increase in cyber attacks, the global cyber insurance market is expected to reach over $28 billion by 2028.
- The cyber insurance market in the U.S. grew to $4.1 billion in 2020.
Source: AJG
- Cyber insurance premiums are rising rapidly as cyber attacks increase. In 2020, premiums written increased 21.7% from 2019.
Despite the increasing premiums, demand for cyber insurance is higher than ever before.
- In 2020, the total number of policies in force increased by 21.3% from 2019.
- There are currently over 4 million cyber insurance policies in force.
Source: NAIC
Cyber Insurance Loss Ratio
The loss ratio in insurance is the total number of claims made divided by the insurance company’s total premiums. Cyber insurance companies’ loss ratios have been rising dangerously high in recent years.
- The average loss ratio for cyber insurance companies has risen from 32.4 % in 2017 to 66.9% in 2020. Some companies even have north of 100% loss ratios.
The increase in loss ratios is one of the primary drivers behind the huge jump in premiums.
Source: NAIC
- The top 5 cyber insurance companies have a 47.6% market share in the U.S.
| Name | Total Premiums | Loss Ratio | Market Share |
|---|---|---|---|
| Chubb Ltd Grp | $404,000,000 | 61% | 14.7% |
| AXA Ins Grp | $293,000,000 | 98.2% | 10.6% |
| America Intl Grp | $228,000,000 | 100.6% | 8.3% |
| St Paul Travelers Grp | $207,000,000 | 85.5% | 7.5% |
| Beazley Grp | $178,000,000 | 47.9% | 6.5% |
| Axis Capital Grp | $133,000,000 | 46.2% | 4.8% |
| CNA Ins Grp | $120,000,000 | 105.7% | 4.3% |
| Fairfax Financial | $109,000,000 | 55.7% | 3.9% |
| Hartford Grp | $103,000,000 | 25.4% | 3.7% |
| BCS Ins Grp | $87,000,000 | 59.1% | 3.1% |
Source: NAIC
Cyber Insurance Claim Reason
- Ransomware and Funds Transfer Fraud account for 50% of all known losses.
- Ransomware demands have increased significantly from an average of $444,000 in 2020 to $1,193,000 in 2021.
- Ransomware attacks have grown 62% since 2019.
- Small businesses are the most common victims of ransomware attacks with, 70% of all ransomware attacks on businesses with 1000 or fewer employees.
- Funds Transfer Fraud has increased significantly, growing 179% from 2020 to 2021.
- The average amount of funds stolen has grown from $116,842 in 2020 to $326,624 in 2021.
Source: CoalitionInc
Cyber Data Breaches
- There were over 1001 data breaches in the U.S. alone in 2020.
- The average cost to a business from a data breach was $8.64 million in 2020.
Source: Statista
Cyber Insurance Cost
- The average cyber insurance cost for a personal policy was just over $50 a month in 2021.
- The average cost for a small business for cyber insurance was $140 a month in 2021.
Summary
That’s it for our cyber insurance statistics in 2023.
We hope you found this article useful.
If you want more information or just want to say hi please leave a comment below!
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FAQs
2 Comments
Madge Dent
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Bye
Kelly Maxwell
Thanks, glad you liked it.