Aon research finds cyber premiums will be worth $4bn in three years
Cyber premiums will see the most rapid global growth in the next three years.
This is according to research conducted by Aon, which predicted worldwide premiums will be worth $4bn by 2021, an annual growth rate of 14.1%.
The finding was calculated based on a series of global studies since 2013.
It found over the past five years, cyber premiums saw the most significant growth at 23% annually.
“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,” said Michael Moran, chief executive of Aon Inpoint, Aon’s data and analytics arm, which conducted the research.
“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.”
The research found across all types of commercial property and casualty insurance purchased, the manufacturing segment generated the highest premiums worldwide in 2017, worth approximately $111bn.
Following manufacturing came agriculture, fishing and forestry at $72bn, boosted by the huge value of this segment in China and the US.
While manufacturing will remain strong, premiums bought by financial institutions, the mining and minerals sector, and technology and media firms, are expected to increase most rapidly through to 2021 with an annual growth rate of around 6% in each case.