The Truth About Cyber Insurance Denials and Your Risk Exposure

and court records this is not speculation this is basically reading the receipts buckle up y'all the scale of cyber insurance simultaneously impressive and honestly if you really think about it they're kind of hilarious here as well the global cyber insurance market hit approximately 16 billion dollars in premiums in 2024.

Now, I'm using 2024 because 2025 data is still a bit, let's call it under contention, but let's use 2024.

By 2030, projections from Gallagher, which is insurance related organizations, say that cyber insurance is going to head somewhere between 30 and 50 billion dollars annually.

And that's a pretty big gap.

But there's a number they don't put in their brochures.

And let me tell you what that number is.

Marshall McLennan and Zurich Insurance, two of the biggest names in the entire industry, insurance industry that is, published a joint white paper to the US Treasury in 2024.

In that paper, they admitted that a $900 billion protection gap exists between insured cyber losses and actual economic losses from cyber attacks.

Wrap your head around that one.

$900 billion of gap.

The Global Federation of Insurance Association backs that up independently, actually.

They estimate total annual cyber losses at roughly $950 billion globally, while insured losses cover about $60 billion.

Now let's do some math here.

That means insurance currently covers approximately $0.06 of every dollar that is lost to a cyber attack.

Six cents on the dollar.

And if that wasn't enough for you, Zurich's own internal analysis found that only 1%, 1% of total economic cyber exposure is covered by insurance.

Again, 1%.

So if someone tells you cyber insurance is solving the cyber risk problem, you now have the receipts from the industry's own documents saying that that is not exactly true.

The product cyber insurance covers 1% of the risk it claims to address.

Know that.

That's not claims in 2024.

So what that means is every dollar you give to a cyber insurer, they paid out less than 50 cents in claims.

The U.S. cyber market actually shrank in premium volume in 2024 for the first time ever, down from about seven and a quarter billion dollars to seven billion dollars, which was driven by 11 consecutive quarters of rate decreases because there's too much competition chasing too little risk.

Identified risk, that is.

Lower proof.

and court records this is not speculation this is basically reading the receipts buckle up y'all the scale of cyber insurance simultaneously impressive and honestly if you really think about it they're kind of hilarious here as well the global cyber insurance market hit approximately 16 billion dollars in premiums in 2024.

Now, I'm using 2024 because 2025 data is still a bit, let's call it under contention, but let's use 2024.

By 2030, projections from Gallagher, which is insurance related organizations, say that cyber insurance is going to head somewhere between 30 and 50 billion dollars annually.

And that's a pretty big gap.

But there's a number they don't put in their brochures.

And let me tell you what that number is.

Marshall McLennan and Zurich Insurance, two of the biggest names in the entire industry, insurance industry that is, published a joint white paper to the US Treasury in 2024.

In that paper, they admitted that a $900 billion protection gap exists between insured cyber losses and actual economic losses from cyber attacks.

Wrap your head around that one.

$900 billion of gap.

The Global Federation of Insurance Association backs that up independently, actually.

They estimate total annual cyber losses at roughly $950 billion globally, while insured losses cover about $60 billion.

Now let's do some math here.

That means insurance currently covers approximately $0.06 of every dollar that is lost to a cyber attack.

Six cents on the dollar.

And if that wasn't enough for you, Zurich's own internal analysis found that only 1%, 1% of total economic cyber exposure is covered by insurance.

Again, 1%.

So if someone tells you cyber insurance is solving the cyber risk problem, you now have the receipts from the industry's own documents saying that that is not exactly true.

The product cyber insurance covers 1% of the risk it claims to address.

Know that.

That's not claims in 2024.

So what that means is every dollar you give to a cyber insurer, they paid out less than 50 cents in claims.

The U.S. cyber market actually shrank in premium volume in 2024 for the first time ever, down from about seven and a quarter billion dollars to seven billion dollars, which was driven by 11 consecutive quarters of rate decreases because there's too much competition chasing too little risk.

Identified risk, that is.

Lower proof.