Cyber insurance products will see the most rapid growth in premiums, said Aon Inpoint—Aon plc’s data, analytics, engagement and consulting team—recently.
Over the past five years from 2013 to 2017, cyber premiums saw the most significant growth at 23 % annually and by 2021, said Aon Inpoint, adding that worldwide premiums will be worth US $4 billion, a compound annual growth rate of 14.1%.
“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.”
Across all types of commercial P&C insurance, the manufacturing segment generated the highest premiums worldwide in 2017, worth approximately US$111 billion, said AonInpoint.
Following manufacturing came agriculture, fishing and forestry at $72 billion, boosted by the huge value of this segment in China and the US, the firm noted.
While manufacturing will remain strong, premiums bought by financial institutions, the mining and minerals sector, and technology and media firms are expected to increase most rapidly through to 2021 with an annual growth rate of around 6 percent in each case, the firm added.
Overall, global commercial P&C (property and casualty) premiums—paid by corporates, organizations in public sector, and not-for-profit organizations—were worth about US$730 billion in 2017 and by 2021 will rise to almost US $900 billion, according to Aon.