Following record-breaking cyberattacks and growing financial losses, demand for cyber insurance is set to accelerate rapidly, driven by rising corporate awareness and regulatory pressures amid concerns over underinsurance and evolving threat landscapes.
The cybersecurity landscape is witnessing unprecedented transformation, largely spurred by a series of high-profile cyberattacks that have heightened awareness among businesses and catalysed growth in the cyber insurance market. Prominent insurers, including Munich Re AG and Chubb Ltd., are positioning themselves to harness this burgeoning sector, which is projected to reach $16.3 billion in 2025, an increase from $15.3 billion the previous year. Furthermore, forecasts indicate that global cyber insurance premiums could more than double to approximately $30 billion by 2030, yielding an annual growth rate exceeding 10%.
The escalating threat of cyberattacks is starkly illustrated by the staggering financial losses attributed to hacking, with technology consultant Cyber Security Ventures estimating a global loss of $9.5 trillion in 2024. This figure sharply contrasts with the $600 billion loss reported by McAfee in 2018, highlighting the dramatic escalation in cybercrime and its economic repercussions. Recent events, such as the significant cyber breach experienced by Marks & Spencer Group Plc—which is projected to cost the retailer around £300 million ($405 million) in operational profit—underscores the urgency for businesses to reassess their cyber risk exposure and insurance coverage.
Beazley Plc, a pioneer in cyber insurance, reports a marked increase in demand for coverage in the wake of high-profile breaches. As Sydonie Williams, the head of international cyber risks at Beazley, noted, “When high-profile breaches happen, shareholders start asking questions.” This translates into heightened interest in cyber insurance, as companies reflect on their vulnerabilities. The need for comprehensive insurance solutions is further amplified by the observation that many organisations remain underinsured, with less than half of FTSE 100 companies having an active cyber policy—a trend mirrored across various sectors.
Industry experts assert that the severity of incidents like the Marks & Spencer breach may compel other businesses to seek cyber insurance and evaluate their current policies for adequacy. Analysts from Bloomberg Intelligence emphasise that high-stakes claims attract scrutiny from insurers and could signal a broader trend of premium increases, even as current rates have been declining due to more stringent policy conditions. "There's going to be another step change, either in the policy wording or in the premiums, or both," stated Abid Hussain, an analyst at Panmure Liberum, reflecting the ongoing evolution within the sector.
The invitation for greater involvement in cyber insurance is especially urgent against the backdrop of increasing regulatory demands and digital transformation across industries. Despite the rapid growth of the sector, data indicates that more than 80% of corporate leaders globally feel their organisations' protection against cyber threats is inadequate. Munich Re’s findings echo this sentiment, revealing that 87% of C-level executives lack confidence in their company’s cybersecurity measures.
Compounding the challenge is the disconnection between the recognition of cyber risk and the actual uptake of insurance solutions. As Hussain points out, while many businesses perceive the value of cyber insurance, economic pressures, such as the prospect of a global recession, may deter them from investing adequately in coverage. This tension between affordability and the need for protection is a critical concern for the insurance market moving forward.
In response to these challenges, some companies are opting to develop their own in-house cyber teams. Such teams provide ongoing threat monitoring and recommendations for bolstering cybersecurity systems. This proactive approach not only helps companies mitigate risks but can also lead to lower premiums, creating a beneficial cycle of risk reduction and cost effectiveness.
As the cyber insurance market continues to evolve, insurers are likely to play a pivotal role in shaping corporate strategies around cybersecurity, thereby transforming risk management practices in a digital age where cyber threats are omnipresent and growing. The scale of recent incidents serves as a stark reminder of the potential financial fallout businesses face—and the necessity for comprehensive coverage and robust cyber defenses.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative is current, dated May 28, 2025, and discusses recent developments in the cyber insurance market, including the impact of high-profile cyberattacks like the Marks & Spencer breach. The figures and projections align with recent reports from Munich Re and Beazley, indicating freshness. However, similar discussions have appeared in the past week, suggesting some recycled content. Notably, a Financial Times article from May 24, 2025, covers the same Marks & Spencer incident and its implications for the cyber insurance market. ([ft.com](https://www.ft.com/content/5a577869-00f8-4a82-95d4-c7f737d3d73f?utm_source=openai)) Additionally, a report from April 2025 by Munich Re discusses the projected growth of the cyber insurance market, which is referenced in the narrative. ([munichre.com](https://www.munichre.com/en/insights/cyber/cyber-insurance-risks-and-trends-2025.item-78be2cf112500c73f14cfd6cc29bce27.html?utm_source=openai)) While the narrative includes recent data, the inclusion of previously reported events and projections may indicate partial recycling. The presence of a press release from Munich Re in the reference map suggests that some content may be based on their recent publications, which typically warrants a high freshness score. ([munichre.com](https://www.munichre.com/en/insights/cyber/cyber-insurance-risks-and-trends-2025.item-78be2cf112500c73f14cfd6cc29bce27.html?utm_source=openai))
Quotes check
Score:
8
Notes:
The narrative includes direct quotes from Sydonie Williams, head of international cyber risks at Beazley, and Abid Hussain, an analyst at Panmure Liberum. A search reveals that these quotes have been used in previous reports, indicating potential reuse. For instance, Williams' statement about shareholders' reactions to high-profile breaches was reported in a Financial Times article from May 24, 2025. ([ft.com](https://www.ft.com/content/5a577869-00f8-4a82-95d4-c7f737d3d73f?utm_source=openai)) Similarly, Hussain's comments on the impact of major attacks on cyber insurance demand were featured in a Reinsurance News article from April 2025. ([captive.com](https://www.captive.com/news/cyber-insurance-market-analysis-sees-both-opportunities-and-challenges?utm_source=openai)) The repetition of these quotes suggests that the narrative may be recycling content from earlier reports.
Source reliability
Score:
7
Notes:
The narrative originates from Claims Journal, a reputable source in the insurance industry. However, the inclusion of a press release from Munich Re in the reference map indicates that some content may be based on their recent publications. While press releases are valuable for providing direct information from companies, they can sometimes present a biased perspective. The reliance on a single source for certain data points may affect the overall reliability of the narrative.
Plausability check
Score:
9
Notes:
The claims made in the narrative are plausible and align with recent industry trends. The projected growth of the cyber insurance market, as reported by Munich Re and Beazley, supports the narrative's assertions. The discussion of the Marks & Spencer cyberattack and its impact on the insurance market is consistent with reports from reputable sources like the Financial Times. ([ft.com](https://www.ft.com/content/5a577869-00f8-4a82-95d4-c7f737d3d73f?utm_source=openai)) The inclusion of quotes from industry experts adds credibility to the narrative. However, the repetition of certain quotes and the reliance on a single source for some data points may raise questions about the originality and comprehensiveness of the information presented.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents current and plausible information regarding the cyber insurance market and recent cyberattacks. However, the recycling of content, including previously used quotes and reliance on a single source for certain data points, raises concerns about originality and comprehensiveness. While the overall information is credible, the lack of new insights and potential biases due to source reliance suggest a need for further verification and supplementation with additional sources.
