{"id":340692,"date":"2024-09-08T12:41:56","date_gmt":"2024-09-08T07:11:56","guid":{"rendered":"https:\/\/www.technologyforyou.org\/?p=340692"},"modified":"2024-09-08T12:41:56","modified_gmt":"2024-09-08T07:11:56","slug":"cybercube-report-predicted-2034-us-cyber-insurance-growth-creates-peak-peril-larger-than-katrina-structural-change-required-to-meet-100bn-capital-need","status":"publish","type":"post","link":"https:\/\/www.technologyforyou.org\/cybercube-report-predicted-2034-us-cyber-insurance-growth-creates-peak-peril-larger-than-katrina-structural-change-required-to-meet-100bn-capital-need\/","title":{"rendered":"CyberCube Report: Predicted 2034 US Cyber Insurance Growth Creates Peak Peril Larger Than Katrina:\u00a0Structural Change Required to Meet $100bn+ Capital Need"},"content":{"rendered":"<header>\n<p class=\"epi-fontLg\"><strong><span style=\"color: #222222; font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif; font-size: 15px;\">LONDON&#8211;(<\/span>BUSINESS WIRE<\/strong><span style=\"color: #222222; font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif; font-size: 15px;\"><strong>)&#8211;<\/strong>Cyber insurance is poised for exponential growth over the coming decade but it remains a capital-intensive peril that requires structural innovation, according to CyberCube, the world\u2019s leading analytics provider to quantify cyber risk.<\/span><\/p>\n<\/header>\n<div class=\"bw-release-body  \">\n<div class=\"bw-release-story\">\n<p id=\"pull-quote\" style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cThe property &amp; casualty (P&amp;C) insurance sector stands at the threshold of a once-in-a-generation opportunity to build a sustainable market for cyber risk transfer. This enables societal resilience to one of the peak risks facing economies today.\u201d<\/span><\/p>\n<p><a id=\"tweet-pull-quote\" href=\"https:\/\/www.businesswire.com\/news\/home\/20240904059795\/en\/CyberCube-Report-Predicted-2034-US-Cyber-Insurance-Growth-Creates-Peak-Peril-Larger-Than-Katrina-Structural-Change-Required-to-Meet-100bn-Capital-Need#\"><\/a>In a new report based on CyberCube\u2019s cyber risk aggregation tool,\u00a0<i>Portfolio Manager<\/i>, the mid-range projection suggests that the US standalone cyber insurance market could reach $45 bn in premium by 2034 \u2014 a five-fold increase from today.<\/p>\n<p><strong>Key findings from the report, \u201cProjecting Cyber Insurance Growth: A 10-Year US Market Outlook\u201d, include:<\/strong><\/p>\n<ul class=\"bwlistdisc\">\n<li><b>Rapid Growth Projections:<\/b>\u00a0Cyber insurance is projected to grow rapidly, driven by increasing digitization of the global economy and rising concerns about cyber risk. CyberCube has modeled three CAGR factors for the US insurance industry to 2034: 10% growth resulting in $17 bn of premium; 20% growth leading to $45 bn of premium and 30% growth creating $109 bn of US cyber premium. CyberCube\u2019s US Industry Exposure Database (IED) pegs US standalone premium in 2023 at $8 bn.<\/li>\n<li><b>Cyber as a Peak Peril:<\/b>\u00a0Cyber will become a peak peril, with the potential for losses from US Standalone Cyber to exceed Hurricane Katrina \u2014 the largest insurable natural catastrophe to date, costing the (re)insurance industry $102 bn in 2005. At 20% CAGR, the amount of capital required to manage a 1-in-250 year loss would be $121 bn.<\/li>\n<li><b>Capital Requirements:<\/b>\u00a0The cyber (re)insurance market will need to substantially increase capital to enable this growth potential, with increases needed from multiple sources including insurers, reinsurers, capital markets, and potentially private-public partnerships.<\/li>\n<\/ul>\n<p><strong>Alex Tenenbaum, Director of Services and lead author of the report, said:<\/strong> \u201cThe cyber insurance market is set for outsized growth compared with other lines of P&amp;C insurance over the coming 10 years. Structural changes are required to support sustainable growth. Some of these changes are starting to emerge and will require fuel to accelerate their growth &#8211; for example, penetration into the small business space and the emergence of the cyber Insurance-Linked Securities market. Some are still very much in their infancy and will require broader market collaboration to unlock, such as public-private partnerships that work for both sides.\u201d<\/p>\n<p><strong>Rebecca Bole, Head of Industry Engagement, added:<\/strong> \u201cThe property &amp; casualty (P&amp;C) insurance sector stands at the threshold of a once-in-a-generation opportunity to build a sustainable market for cyber risk transfer. This enables societal resilience to one of the peak risks facing economies today.\u201d<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>LONDON&#8211;(BUSINESS WIRE)&#8211;Cyber insurance is poised for exponential growth over the coming decade but it remains a capital-intensive peril that requires structural innovation, according to CyberCube, the world\u2019s leading analytics provider to quantify cyber risk. \u201cThe property &amp; casualty (P&amp;C) insurance sector stands at the threshold of a once-in-a-generation opportunity to build a sustainable market for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14083],"tags":[],"class_list":{"0":"post-340692","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-technology-industry-news"},"_links":{"self":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/340692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/comments?post=340692"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/340692\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/media?parent=340692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/categories?post=340692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/tags?post=340692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}