Credit rating agency Fitch analyzed cyber insurance market share and performance in a new special report, ‘U.S. Cyber Insurance Market Share and Performance’.
The report analyzes data from a new 2015 statutory supplement to compile company and industry statistics on cyber insurance.
Aggregating the cybersecurity statutory supplement data for the U.S. property/casualty (P/C) insurance industry finds that approximately 120 insurance groups reported writing cyber coverage in 2015 totaling approximately $1 billion in direct written premiums volume, found Fitch.
According to Fitch, cyber-related insurance coverage represents a significant growth opportunity for P/C insurers. Insurance broker Marsh & McLennan Companies, Inc. (MMC) estimated that in 2014 the global insurance market wrote approximately $2 billion in cyber insurance premiums, which could multiply by a magnitude of three to five times by 2020.
“Industry estimates suggest that the global cyber insurance business could increase to $20 billion by 2020, but the lack of information on cyber insurance is a challenge for insurance companies, policyholders, regulators, and investors to evaluate and price risk,” said James Auden, Managing Director, Fitch Ratings.
“The ultimate profitability of the P/C industry’s cyber insurance efforts will take some time to assess as the market matures and future cyber-related loss events emerge,” said Gerry Glombicki, Director, Fitch Ratings.