Solutions for effective cyber risk mitigation are not new: insurers have provided cover for incidents ranging from data breaches to ransomware since the late 1990s. However, today’s highly complex infrastructure systems and multiple network dependencies create ever more opportunities for criminals and hostile nation-state actors to inflict devastating attacks across industry and society.
In response, the cyber insurance market has grown as more organisations seek to minimise the threat of cyberattacks that cause substantial financial losses, damage to systems and critical infrastructure, severe business disruption, and reputational harm. Allied Market Research estimated the size of the cyber insurance market could grow beyond USD20bn by 2025, from USD4bn in 2018.
Such growth is not without significant challenges, however. Insurance companies are tasked with keeping up with a highly unpredictable landscape that moves faster than can be mapped via traditional risk controls. This is especially so as new disruptive technologies such as artificial intelligence lower the barriers to mounting successful attacks. To deliver credible and effective cyber insurance policies, insurers must keep pace with technological capabilities that are fast outpacing existing defence mechanisms.
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