Munich RE is out with a useful new report, “Cyber Insurance Risks and Trends 2024,” that ranges from commentary on the growth of various cyber risks (ransomware is back) to a bullish projection that the cyber insurance market will reach USD $29 billion by 2027 (see below).
The report’s analysis of threats includes the growing importance of AI on both cyber defense and offense. This includes AI’s impact on “CEO fraud attack,” or fraudulent instruction scams, in which the growing availability of deepfakes makes it easier for criminals to impersonate executives and direct employees to transfer money to scam accounts.
This recent video call scam cited in the report will scare anybody responsible for protecting corporate funds. “In early 2024, a Hong Kong based employee of a multinational company transferred nearly $26 million to scammers after attending a video call with deepfakes of their co-workers, including the company’s CFO. The employee was the only human being who attended the video call, while fake participants were impersonated with AI-driven technology.” (emphasis ours)
Whether it’s a video call scam or another type of attack, it’s no surprise the cyber liability market is growing rapidly. “The global cyber insurance market has reached a size of US$ 14bn in 2023 and is estimated by Munich Re to increase to around US$ 29bn by 2027. Showing significant growth potential, the market is driven by the awareness of the increasing frequency and sophistication of cyber-attacks, including the potential financial repercussions, as well as by stricter regulatory requirements,” according to the report.
Risks and Trends 2024:” Munich RE (4/4/24)