Worldwide cyber premiums will be worth US$4 billion by 2021: Aon

Cyber insurance premiums will outpace all other P&C premiums by the year 2021, according to a new report from Aon Inpoint, Aon plc’s data, analytics, engagement and consulting team.

Aon predicts that worldwide cyber premiums will be worth US$4 billion by 2021, representing a compound annual growth rate of 14.1%. The financial institutions, mining and minerals, and technology and media sectors are expected to have a higher rate of adoption than other industry segments.

Related: Majority of Canadian CEOs feel “very well prepared” for cyberattack: KPMG

“As we look ahead, we are seeing a broad shift of companies putting a greater value on intangible assets, such as cyber and intellectual property,” Michael Moran, CEO of Aon Inpoint, said in a news release. “There are multiple reasons for the increased focus and increased premiums ranging from financial statement protection due to a business interruption to the constantly evolving global regulatory environment including the European Union’s General Data Protection Regulation.”

Aon looked at insurance purchased by corporate, public sector and not-for-profit organizations between 2013 and 2017, and forecasted trends into 2021. Cyber premiums saw the most significant growth annually over the past five years at 23%.

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This story was originally published by Canadian Insurance Top Broker.