Size of EU cyber market expected to reach $400M by 2016

According to Advisen research based on relatively safe conclusions drawn from its vast database, the size of the European cyber insurance market is expected to nearly double in 2015 and against in 2016.

During Advisen’s Cyber Risk Insights Conference in London, Executive Vice President Jim Blinn said buyers will also likely be able to buy more limits of coverage.

In contrast, the US cyber market in 2014 eclipsed $2 billion and it is possible to obtain limits of more than $510 million. Advisen expects the market to grow to about $2.4 billion in 2015, with limits possible of nearly $610 million.

Do these graphics look like conference slides? They are. We used the slides from Blinn’s presentation. Cyber Risk Network members can download the slides. Click below

One significant factor in the increase of cyber insurance purchases in the US is, presumably, notification laws.

To demonstrate this, Blinn plotted the number of states by year that adopted notification requirements following a data breach. Clearly, states passed these types of laws rapidly from 2005-2007.

But did the passage of these laws equate to more events, a heightened awareness–and finally more purchases of insurance?

According to the data, notifications certainly look to have increased the number of events. A year after a state passed a notification law, events increase about 75 percent, on average. Three years later, events are up more than 150 percent.

The following graphic appears to indicate the purchase of cyber insurance follows the passage of notification laws. This, as Blinn said, is the good news-bad news scenario for the EU, which is looking to adopt notification laws.