Global cyber premium set to rise as attacks continue

The global cyber insurance market is projected to reach $16.3 billion in gross written premium in 2025, a 6.5% increase over 2024, according to a report issued Thursday by Munich Reinsurance Co.

The increases come as data breaches and ransomware attacks continue to hit businesses.

Governments, manufacturing and technology were the sectors most affected by cyberattacks in 2024, according to Munich Re.

Munich Re’s cyber data analytics team said that ransomware was the leading cause of cyber insurance losses, with the manufacturing sector seeing the highest proportion of ransomware claims. Health care ranked second.

Business interruption accounts for the largest share of ransomware costs at 51%, the report said.

Data breaches also remained at a high level, with the average cost of a breach rising by 10% to an all-time high of  $4.9 million.

Supply chain cyber incidents also remain a leading source of loss. “Digital bottlenecks …  continue to pose major risks,” the report said.

In addition, a global survey showed that 87% of C-suite level respondents consider their organization’s protection inadequate, the report said.