Researchers say they expect cyber insurance to remain the fastest growing business line for the rest of the decade – with global premiums reaching almost $40-billion by 2030. Although they say cyber insurance remains a relatively novel, speciality product, policies are continuing to evolve.

They say the most common coverage includes losses resulting from business interruption, contingent business interruption when revenue is lost because of a third-party’s failure, followed by digital asset destruction, data retrieval and system restoration costs, system failures, extortion, ransomware, remediation and data privacy liability.

“Cyber has become the fastest growing insurance business line in the last decade and we expect this trend to continue despite some pricing deceleration in North America and Europe,” Morningstar DBRS researchers write in their recent commentary, Cyber Insurance Market Growth Driven by Regulatory Changes and Rising Geopolitical Tensions. 

They say stricter regulatory requirements, geopolitical tensions and the proliferation of state-sponsored attacks will remain essential demand drivers. They add that as organizations continue to embrace digital technologies, the firm expects there will be a need for additional and more comprehensive solutions. Governments, financial institutions and health care organizations, they say, remain top targets.