Cyber insurance premiums surge by 50% as ransomware attacks rise

US cyber insurance premiums surged 50% in 2022 as increased ransomware attacks and online commerce drove demand for coverage.

Premiums collected from policies written by insurers reached $7.2 billion in 2022 and tripled in the past three years, ratings firm AM Best said in a study released this week.

“Systematic risk is an ongoing concern,” Fred Eslami, an AM Best associate director, said in a statement. “Ultimately, the coverage provided to insureds may be decided by the risk appetite of the insurer, and to a certain extent, the coverage that reinsurers are willing to provide.”

Ransomware attacks soared last year, pushing demand for coverage after the pandemic-induced work-from-home era also made remote workers more vulnerable to digital attacks. Those attacks also spurred companies and individuals to adopt more robust cybersecurity measures.