Cyber Insurance: A $9.5 Trillion Band-Aid?

As the $9.5 trillion cybercrime economy booms, cyber insurance promises relief—but is it just a Band-Aid? Cybersecurity Ventures predicts $10.5 trillion in damages by 2025, with the insurance market hitting $14.8 billion (Cybersecurity Ventures).

Claims soared—$359,000 on average in 2020, up from $145,000 in 2019 (PMC). Ransomware, at $1.85 million per hit (Embroker), drives demand. McAfee’s 2020 report valued the market at $5.5 billion, yet 1 in 10 U.S. firms lack coverage (AAG IT). Premiums doubled in 2021 (Comparitech), reflecting risk. The 2021 Poly Network hack ($610 million, Comparitech) shows payouts can’t match scale.

Does it fuel crime? Some argue payouts encourage attacks—48% of firms paid ransoms in 2023 (SpyCloud). IBM’s $4.45 million breach average dwarfs insurance scope. Insurers push training and security—Accenture’s 2023 report says aligned firms cut breach costs 26%.

It’s a lifeline, not a fix. In this $9.5 trillion mess, prevention beats payout every time.

References

• Cybersecurity Ventures. (2025). Cybercrime to Cost $10.5 Trillion by 2025.

• PMC. (2020). Cyber Risk Review.

• Embroker. (2025). Cyber Attack Stats 2025.

• McAfee. (2020). Hidden Costs of Cybercrime.

• Comparitech. (2024). 300+ Cybercrime Stats.