The group’s report, entitled ‘Cyber Insurance, 2021 Update – Thematic Research’, said that cybersecurity was “thrust into the spotlight” in 2020 as the pandemic “forced businesses to digitize their processes and adopt remote working practices overnight”.
According to GlobalData, the pandemic presented an opportunity for cybercriminals to “exploit global panic”, with the group noting a surge in cyberattacks in 2020. This has made the need for cyber insurance apparent to businesses, but the market is not as easy to navigate as it once was.
The market had already recorded growth of 33.5% in 2020, as businesses “realized the increased threat Covid-19 and staff working from home posed”.
According to GlobalMarket, the growth rate is set to remain high throughout the forecast period, with a projected rate of 27.3% growth in 2021.
Ben Carey-Evans, insurance analyst at GlobalData, said: “The cyber insurance market has seen rapid expansion in recent years, with customers enjoying high coverage limits, flat rates, and abundant capacity as insurers sought to capture business in a highly competitive market.
“Despite lower cover limits and increasing premiums, we expect the cyber insurance market to see continual strong year-on-year growth up to 2025. The need for robust cybersecurity and cyber insurance is becoming apparent to businesses of all types and sizes, as the frequency and severity of cyberattacks continues to rise.”
He added: “Covid-19 has also brought about a permanent shift in the way businesses and consumers operate, with remote working practices set to stay and digital consumer channels seeing more use than before the pandemic.
“This lasting shift in behavior will push the demand for both commercial cyber insurance and to a lesser extent personal cyber insurance in the coming years.”