Study. 41% of companies worldwide need insurance against cyber risks

Hibapress

A growing number of business leaders around the world, 41%, are considering purchasing cyber insurance in light of growing threats in this area, according to a survey published Friday by German group Munich Re.

This share was only 35% in 2022, according to the German reinsurance giant’s multi-year cyber risk study.

In 8% of cases, respondents indicated that their company had considered purchasing insurance but declined the option, and 9% indicated that they did not plan to purchase such a policy.

The survey, conducted among more than 7,500 participants across 15 countries and various sectors, also shows that 87% of respondents believe their organization is ill-prepared for cyber threats, a percentage that is 4 percentage points higher than in 2022.

Of the factors explaining the lack of cyber risk coverage subscriptions, price (33% of responses) comes before the lack of awareness of the offering and the lack of understanding of the products.

The financial (39%) and IT (34%) sectors, which are among the sectors most affected by cyber attacks, have the highest values in terms of insurance contracts already concluded.

The global premium market for cyber insurance totaled $14 billion in 2023 and is expected to reach about $29 billion by 2027, Munich Re estimates.