Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Cyber Insurance

Cyber Insurance Market to Double by 2020, Says Munich Re

The market for insurance against cyber threats will double by 2020 to over 8 billion dollars, German reinsurance giant Munich Re told a conference in Monaco on Sunday.

The market for insurance against cyber threats will double by 2020 to over 8 billion dollars, German reinsurance giant Munich Re told a conference in Monaco on Sunday.

“Cyber risks are one of the biggest threats to the networked economy,” Munich Re board member Torsten Jeworrek said in a statement on the first day of an annual meeting of reinsurers in the Mediterranean principality.

Munich Re estimated that companies could more than double their spending on cyber insurance from $3.4-$4 billion (3-3.4 billion euros) in 2017 to $8-$9 billion by 2020.

While the digital economy had increased productivity, “increased networking of machines, and equipment in particular, can also give rise to very complex risks such as data theft, disruptions in the interaction between networked machines, and even the failure of entire production lines and supply chains,” Munich Re said, estimating the number of connected devices worldwide will rise from 27 billion to 125 billion by 2030.

“The economic costs of large-scale cyber attacks already exceeds losses caused by natural disasters. Where small and medium-sized enterprises are affected, such attacks can soon threaten their very existence,” Munich Re warned. 

The most damaging attacks to date, in economic terms, have been caused by malware such as WannaCry and NotPetya, which infected hundreds of thousands of computers around the world in 2017.

The malware encrypted data on hard drives, demanding that users pay ransoms to regain access to the system.

Advertisement. Scroll to continue reading.

“This trend will continue as more and more machines and devices are connected,” Munich Re warned.

Related: Cyber Insurance Startup At-Bay Raises $13 Million

Related: Cisco, Apple Launch Cyber Risk Offering With Insurance Giant Allianz

Related: Cyber Insurance Market to Top $14 Billion by 2022: Report

Written By

AFP 2023

Click to comment

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

SecurityWeek’s Threat Detection and Incident Response Summit brings together security practitioners from around the world to share war stories on breaches, APT attacks and threat intelligence.

Register

Securityweek’s CISO Forum will address issues and challenges that are top of mind for today’s security leaders and what the future looks like as chief defenders of the enterprise.

Register

Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Risk Management

The supply chain threat is directly linked to attack surface management, but the supply chain must be known and understood before it can be...

CISO Strategy

Cybersecurity-related risk is a top concern, so boards need to know they have the proper oversight in place. Even as first-timers, successful CISOs make...

Cyber Insurance

Cyberinsurance and protection firm Boxx Insurance raises $14.4 million in a Series B funding round led by Zurich Insurance.

Endpoint Security

Today, on January 10, 2023, Windows 7 Extended Security Updates (ESU) and Windows 8.1 have reached their end of support dates.

Application Security

Fortinet on Monday issued an emergency patch to cover a severe vulnerability in its FortiOS SSL-VPN product, warning that hackers have already exploited the...

Cybersecurity Funding

2022 Cybersecurity Year in Review: Top news headlines and trends that impacted the security ecosystem

Risk Management

In this virtual summit, SecurityWeek brings together expert defenders to share best practices around reducing attack surfaces in modern computing.