Cyber Insurance Market to Witness Major Shift as Reinsurers Embrace Cyber Capacity in 2024

CyberCube’s latest report signals a pivotal shift in the reinsurance industry’s approach to cyber insurance in 2024, predicting a more substantial involvement from traditional reinsurers. CyberCube CEO Pascal Millaire emphasizes that reinsurers, who were initially hesitant, are now recognizing the necessity to engage in the burgeoning cyber insurance market. This shift is primarily attributed to the transformation of traditional insurance lines by internet-connected risks and the lucrative prospects of cyber insurance.

The report predicts several key developments in the industry. It foresees growth in the insurance-linked securities (ILS) sector, aiming to foster a more dynamic market. Additionally, the report cautions about an increase in cyberattacks, likely fueled by the advancement of artificial intelligence (AI).

To counter these challenges, the insurance industry is expected to develop closer relationships with small and medium-sized enterprises (SMEs), tailoring their services to meet specific needs. There’s also an anticipated collaboration between insurers and the public sector to enhance societal defense against significant cyber events.

For brokers, CyberCube advises the establishment of comprehensive cyber strategies to stay competitive in 2024. Admiral (ret.) Michael S. Rogers, former NSA director and US Cyber Command commander, who serves on CyberCube’s board, notes a shift in cyberattackers targeting the SME market. He emphasizes the need for the insurance industry to closely collaborate with companies to strengthen cyber risk mitigation strategies across all sectors.