Cyber Insurance Comes of Age: From Niche Policy to Strategic Risk Tool

"Cyber insurance is now estimated to be a $17 billion global industry and projected to nearly double to $40 billion by 2030. But the next phase of growth won't come from the Fortune 500. Large corporations already understand their exposure and have the internal expertise to evaluate and transfer risk. The untapped market lies with the lower end of the middle market and small enterprises (SMEs), organizations that face the same cyber threats but often lack the resources, knowledge or guidance to act."

"In many regions, particularly across Europe and emerging markets, the value proposition of cyber insurance still isn't fully understood. Brokers play an essential role in education, helping clients see that cyber risk is not just an IT issue, but a financial, operational, and reputational one. Yet, outreach remains fragmented. The conversation about cyber risk simply hasn't reached every corner of the business world."

"Despite growing awareness, some companies remain hesitant to purchase cyber coverage. The reasons are multi-layered: Education gaps: Many organizations still assume traditional property or general liability policies cover digital risks. They rarely do. Cost pressures: Premiums rose sharply during the ransomware surge of recent years, leading some firms, particularly in the mid-market, to invest instead in strengthening their cybersecurity posture rather than transferring the risk. Perceived complexity: Cyber policies can be intricate, with evolving terms, technical questionnaires, and exclusions that may intimidate first-time buyers."

Cyber risk has become a board-level concern as ransomware and breach costs rise. The global cyber insurance market is estimated at $17 billion and is projected to reach $40 billion by 2030. Future growth will be driven by lower middle-market firms and small enterprises that lack resources and expertise for risk transfer. In many regions, especially Europe and emerging markets, the value of cyber insurance remains poorly understood. Brokers play a crucial educational role, but outreach is fragmented. Some companies hesitate because of mistaken policy assumptions, rising premiums, and perceived policy complexity, often prioritizing controls over coverage.

Read at Securitymagazine