Verisk Projects Written Premium for Commercial Cyber Liability to Reach $6.2B by 2020
JERSEY CITY, N.J., March 6, 2018 — A Verisk (Nasdaq:VRSK) analysis estimates that written premium for the commercial cyber liability market will reach $6.2 billion by 2020, with annual take-up rates growing 20 to 30 percent during the next several years.
“Almost daily, revelations of cyber breaches in healthcare and education underscore the importance of cyber coverage for these markets,” said Maroun Mourad, president of commercial lines at Verisk’s ISO business. “Cyber liability risk is rapidly permeating every business that has any dependence on digital technology—which means very few enterprises are exempt. We see rapid growth being powered by gains in small and midsize accounts as the market matures.”
“The types and targets of cyberattacks are changing frequently, causing certain industries to be more likely to buy cyber insurance,” said Prashant Pai, vice president of cyber offerings at Verisk. “Finding and sizing those opportunities will be critical for insurers as they look to capitalize on their efforts in this rapidly growing market.”
Verisk’s analysis of the commercial cyber liability market was conducted using ISO MarketStance – Commercial Insight. The analysis applies exposure, growth, and insurance-specific measures to individual businesses, consuming data from dozens of sources to build market information from the bottom up. It estimates the market size of stand-alone cyber policies and cyber as part of commercial package policies.
“One challenge in sizing the cyber market is defining what’s being measured,” said Dr. Frederick (Fritz) Yohn, managing director at Verisk’s ISO business and head of ISO MarketStance solutions. “What businesses are included, what’s the baseline, what other factors are influencing estimates? Our bottom-up methodology has been proven in sizing other emerging markets. We now provide a vital tool to help insurers identify the most promising opportunities in cyber liability.”
The analysis and a high-level view of the commercial cyber liability market opportunity for insurers are detailed in a new white paper, Sizing the Standalone Commercial Cyber Insurance Market.
Verisk (Nasdaq:VRSK) is a leading data analytics provider serving customers in insurance, energy and specialized markets, and financial services. Using advanced technologies to collect and analyze billions of records, Verisk draws on unique data assets and deep domain expertise to provide first-to-market innovations that are integrated into customer workflows. Verisk offers predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, natural resources intelligence, economic forecasting, and many other fields. Around the world, Verisk helps customers protect people, property, and financial assets.
Headquartered in Jersey City, N.J., Verisk operates in 30 countries and is a member of Standard & Poor’s S&P 500® Index. In 2017, Forbes magazine named Verisk to its America’s Best Mid-Size Employers list and to its World’s Most Innovative Companies list. Verisk is one of only seven companies to appear on both lists. For more information, please visit www.verisk.com.
Edelman (for Verisk)