Regardless of whether you own a small or a big business, the insurance coverage that has become a necessity in today’s world is cyber insurance. With the alarming increase in cybercrimes aimed at the business sector, the market for cyber insurance too, has increased manifold.
This blog puts forward vital statistics related to cyber insurance which will make it abundantly clear how crucial it is today to have this insurance coverage to ensure comprehensive protection of your business.
Current Market Size and Future Forecast
A vast market for cyber insurance already exists worldwide with cybercrime being a global menace. The market for cyber insurance is only expected to grow exponentially in the coming years with a surge in its demand. Let us see what the figures indicate about its present and future market size.
- Current Market SizeAccording to the latest available data, the global cyber insurance market size was valued at USD 13.33 billion in 2022 and is expected to reach USD 16.66 billion in 2023. The market size of cyber insurance in the U.S. in 2022 was $ 5.6 bn which saw an increase of 19.2% in the preceding 5 years and is estimated to cross $ 6 billion in 2023.
- Potential GrowthEstimates suggest that the cyber insurance market is going to experience a huge leap during this decade to reach a staggering USD 84.62 billion by 2030 with a CAGR of 26.1%.
Incidents of Cybercrimes
The principal factor driving this heightened demand for cyber insurance is the extensive rise in the number of cybercrimes over the years. The statistics given below show clearly why cybercrime is considered a major risk among all businesses.
While in 2021, ransomware affected 66% of organizations, in 2022, 25% of all cyber breaches were related to ransomware threats.
The FBI’s Internet Crime Complaint Center (IC3) received 3,729 complaints about ransomware attacks in 2021.
- IC3 Cybercrime StatisticsIn 2022, IC3 received 800, 944 reported complaints with losses exceeding $ 10.3 billion with phishing schemes as the primary crime with 300, 497 complaints.
- Cyber Frauds and Identity TheftsAccording to The Federal Trade Commission’s, Consumer Sentinel Network, among 5.1 million reports, cyber fraud accounted for 46% and identity theft, 21%. 43.7% of all identity thefts were done using credit cards with 28.1% miscellaneous identity thefts.
Cyber Insurance and the Covid-19 Pandemic
The COVID-19 pandemic era witnessed a surge in the digitalization of business operations due to forced work-from-home setups. The FBI’s IC3’s 2020 Internet Crime Report shows that 2020 saw an increase of 300,000 complaints from 2019 with 791,790 complaints.
Cyber Insurance Claim Statistics
The top cyber insurance claims statistics include:
- 81% of the claims were for Ransomware attacks
- 1,153 cyber insurance claims in 2022 were for phishing scams
- 27% of data breaches and 24% of first-party claims were denied or led to partial payouts due to exclusions in their cyber insurance coverage
Familiarity and Experience with Cyber Insurance
The following figures show U.S. citizens’ perspectives on cyber insurance.
- 66% of U.S. adults are familiar with cyber insurance
- For those who don’t have insurance, 44 % of them need to do more research and 34% think it’s too expensive
Protect Your Business with Riverbend Insurance
Contact us today to secure your business with our tailored cyber insurance. Our team at Riverbend Insurance has the experience and expertise to address industry-specific cyber risks with comprehensive coverage.