"Industry estimates suggest that the global cyber insurance business could increase to $20 billion by 2020, but the lack of information on cyber insurance is a challenge," said Fitch Ratings managing director James Auden in a recent report.
"Challenges in isolating cyber related premiums and exposures from other risks within a package policy create limitations in analyzing the supplemental filing as total cyber insurance premiums are likely understated," he added.
Fitch recently released a study that aims to measure the size of the cyber insurance market in the US, based on statutory reports.
Data from the broader property/casualty insurance segment revealed that around 120 underwriters reported providing a total of $1 billion worth of cyber coverage last year.
However, the growth comes with a caveat as carriers struggle to make heads or tails of the actual risk involved in this nascent segment. Direct P/C loss ratio specifically for cyber business stood at a hefty 65%, the report said.
"The ultimate profitability of the P/C industry's cyber insurance efforts will take some time to assess as the market matures and future cyber-related loss events emerge," Fitch Ratings director Gerry Glombicki also observed.
The Fitch report, U.S. Cyber Insurance Market Share and Performance
, compiled company and industry statistics on cyber insurance. It can be accessed through www.fitchratings.com.