A new Aon report shows a broad shift of companies putting a greater value on intangible assets, such as cyber and intellectual property
Worldwide cyber insurance premiums will be worth $4 billion, a compound annual growth rate of 14.1% according to new research from Aon.
Looking at data from insurance purchased by corporate, public sector and not-for-profit organizations between 2013 and 2017, and forecasted trends into 2021, the team found cyber insurance products will see the most rapid growth.
In addition, the financial institutions, mining and minerals, and technology and media sectors are expected to expand rapidly in comparison to other industry segments.
“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, CEO of Aon Inpoint.
“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.”
Additional highlights from Aon’s series of reports include:
- Global commercial P&C premiums were worth approximately $730 billion in 2017 and by 2021 will rise to almost $900 billion; within this total, U.S. commercial P&C insurance premiums were worth $274.5 billion in 2017 and are forecast to rise to $331.5 billion in 2021.
- Among the larger product categories, premiums for commercial auto insurance worldwide grew the fastest from 2013-2017 reaching $192 billion in 2017.
- Globally, workers’ compensation premiums stood at $83 billion, mainly due to their huge value in the U.S., having increased from $71 billion in 2013.
- Around $97 billion of the global commercial lines market is bought by micro enterprises (comprising self-employed individuals and entities with up to nine employees).