Cyber Insurance Market Set to Double by 2030 Despite Recent Growth Slowdown: Munich Re

Munich Re

The global cyber insurance market is on track to more than double by 2030, according to projections by Munich Re, despite a recent slowdown in premium growth. The reinsurer estimates the market reached $15.3 billion in global premiums in 2024 and is expected to grow at an average annual rate exceeding 10%.

Currently, cyber insurance accounts for less than 1% of total global Property and Casualty insurance premiums, signaling untapped potential. North America led the market in 2024 with $10.6 billion in premiums—69% of the global share—followed by Europe at $3.3 billion, representing 21%.

As per Munich Re, the large corporations dominate the market, small and medium-sized enterprises (SMEs) remain largely uninsured, either due to a lack of awareness or the belief that cyber risks can be managed internally. Experts view this as a critical area for market expansion.

The reinsurer projects that cyber insurance will continue to develop at one of the fastest rates among the subsectors of the global insurance industry, with premiums expected to reach $16.3 billion by 2025.

“The capability of the cyber insurance industry, driven especially by knowledge and commitment of the reinsurance segment, to provide sophisticated risk modelling and stable capacity will remain one of the key pillars for the overall development of the market”, Munich Re stated. However, the firm cautioned that sound underwriting discipline is crucial given the rising threat landscape.

Industry studies estimate the potential accumulation loss from a catastrophic cyber event to be between $20 billion and $46 billion. Meanwhile, global cybercrime costs could reach as high as $9.5 trillion in 2024 alone.