Cybersecurity Insurance Explosion Poses Challenges

Cybersecurity insurers may see premiums gross income rise by 300 percent or more in the next five years, even as the product’s pricing and composition continue to evolve, insurance specialists and others told Bloomberg BNA.

It took about 15 years, or until about 2012, for cybersecurity insurance to increase from the first cybersecurity policies ever written in the U.S. to about $1 billion in gross written premiums, the specialists said.

A combination of high-profile breaches, increased state and federal statutes and guidance and continued efforts to educate brokers and potential insureds may drive premium revenue to $2.75 billion by the ...