Cyber insurance market foresees steady growth

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The U.S. market for cyber insurance grew significantly in 2017, as direct premiums written rose nearly 32% year over year to $1.8 billion, and policies in force jumped 24% to 2.6 million, according to a new A.M. Best special report. However, despite the growth, the cyber insurance take-up rate remains low, particularly among small to medium-sized enterprises.

The new Best’s Special Report, states that the cyber insurance market represents a meaningful growth opportunity for insurers, given that the take-up rate for small to medium-sized companies remains in the low teens. These companies generally remain complacent about their exposure to cyber-related events, such as data breaches and system failures, and underestimate the potential for business interruption.

On the other hand, national accounts and Fortune 500 companies, particularly companies at greater risk such as financial institutions and health care companies, are increasing cyber coverage.

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