Report highlights the growing demand for cyber protection
IDC Financial Insights has released a new report highlighting cyber insurance as an excellent opportunity for insurers due to the growing demand for this form of coverage. Cyber insurance is becoming more important as companies become more reliant on digital technology. These companies face serious risks that could result in severe financial losses if they do not adequately protect the sensitive information of consumers. Demand for cyber protection is on the rise and insurers may find promising opportunities in this emerging market.
Cyber insurance market could reach $20 billion within the coming decade
According to the report from IDC Financial Insights, the cyber coverage market is expected to see significant growth over the next 10 years. In terms of premiums, the market is expected to go from $2 billion globally to more than $20 billion over the next decade. The growth of the cyber protection segment is also guaranteed, as the vast majority of businesses throughout the world have been targeted by some type of digital attack.
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Majority of businesses have fallen victim to cyber attacks
In 2015, the United Kingdom government released a report that showed that 81% of large businesses and 60% of small businesses were victims of a cyber attack in 2014. Cyber attacks are considered a major problem in various industries, especially due to the attraction that consumer information has to malicious groups. Notably, businesses are not the only entities that have to worry about cyber attacks.
Cyber attacks are a threat to more than just businesses
In July of 2015, a cyber attacks against the U.S. government resulted in the financial and medical information of nearly 20 million people being compromised. Both governments and businesses face serious risks when it comes to cyber attacks. Cyber insurance can help mitigate the cost of these risks and reduce the financial burden that organizations experience when trying to recover from digital attacks. Relatively few insurers offer cyber protection, but this is likely to change in the coming years as cyber attacks become more prominent.