Global specialty insurance market to grow by $57b in 2028

Lack of robust IT security infrastructure heightens risks.

The global specialty insurance market is expected to grow by $57.25b between 2023 and 2028, with a compound annual growth rate (CAGR) of 10.36%, according to Technavio. 

This growth is being driven by factors such as increasing globalisation, the rise of new industries and innovative business models, and the growing frequency of natural disasters and climate-related events.

The expansion of multinational corporations and international trade agreements, coupled with advancements in transportation and communication technologies, is reducing barriers to global business, further fueling the demand for specialty insurance.

However, the rising threat of cyberattacks poses a significant challenge. The adoption of cloud services and the integration of multiple technologies have increased businesses' vulnerability to threats like distributed denial-of-service (DDoS) attacks and ransomware.

A notable example occurred in April 2023, when the Insurance Information Bureau of India suffered a cyberattack, potentially compromising sensitive data. These cyber risks, compounded by a lack of robust IT security infrastructure, threaten business continuity and may slow the market's growth.

Despite these challenges, the specialty insurance market is expected to remain resilient as businesses increasingly focus on risk management and disaster recovery services.