Growing geopolitical tensions and the use of digital technologies are amplifying cyber risks, with cyberattacks increasing by 38% in 2022 compared to 2021, globally.^[1] Although the dedicated cyber insurance market has grown rapidly over recent years, a huge protection gap persists, especially if an unprecedented, extreme cyber incident – striking multiple, large segments of the global economy – were to occur.

Issue summary

Insurance plays an important role in enhancing resilience to cyber threats, which are rising as a result of digitalisation and growing hacker capabilities. The market for standalone cyber insurance has expanded sharply in the last few years, but the dynamic nature of cyber risk requires insurers, businesses and governments to constantly evaluate and update their approaches to cybersecurity.  

When it comes to ransomware, insurance does more than provide financial protection and cover ransom payments. Here are 2 important ways cyber insurers help strengthen the cyber resilience of insured firms, according to our study.

• New Geneva Association report highlights the important role of private re/insurers, alongside governments, in boosting society’s resilience to ransomware and ensuring the full benefits of digitalisation can be realised.

• The report explores the significant value add of cyber insurance beyond risk transfer, amid ongoing debate on whether to ban ransom payments or associated insurance coverage.

• Governments should do more t

Although cyber risk premiums have expanded sizeably in years and loss ratios compare favourably relative to other product lines, sustainable growth of the cyber insurance market should not be taken for granted. In our new report we identify three fundamental prerequisites to make cyber risk insurable. Despite recent advances, cyber risk creates unprecedented challenges; most notably accumulation risk, which is at the heart of many concerns about cyber risk.