Cyber Insurance is an emerging sector which has seen $6.7bn of investment in the past five years, globally. Cyber attacks can be crippling to an organization, especially small businesses which highlights the need for Cyber Insurance. According to the US National Cyber Security Alliance, 60% of small businesses that suffer a cyber attack go out of business within half a year. The average data breach cost for businesses with fewer than 500 employees is $2.98 million says IBM and the Ponemon Institute.
Fortune Business Insights values the global Cyber Insurance market size at $13.33bn in 2022 and is projected to grow from $16.66bn in 2023 to $84.62 billion by 2030 which is a CAGR of 26.1% (2023 – 2030). Cyber Insurance deal activity is expected to reach 30 deals based on the first half of 2023, a 25% drop YoY, which is similar to 2020 levels which saw 29 deals announced.
Coalition, a Cyber Insurance and security company, is the most well-funded Cyber Insurance company with $770m in funding, as of 7th August 2023. The company raised $250m in their latest Series F funding round from Allianz X, Kinetic Partners and Valor Equity Partners. The latest funding round valued Coalition at $5bn. The new funding comes as Coalition continues its wave of growth at massive scale, exceeding $775 million in run rate GWP (gross written premium) and a nearly 200% increase in revenue growth over the prior year. Coalition partners with brokers in all 50 states to provide active cyber and active executive risks insurance and offers active cyber insurance across Canada. Later this year, Coalition will launch its UK active cyber program in partnership with Allianz, as announced last week.
The USA has been the most active Cyber Insurance country in the past five years with 85 deals raised, a 59% share of total deals. France was second most active Cyber Insurance country with 10 deals and the UK was third with nine deals.
