Cyber insurance is no longer an option. In the face of growing cyber attacks powered by sophisticated infrastructure and skilled hackers, it has become a necessity.
Globally, the cyber insurance market is expected to experience a rise from $16.5 million in 2025 to over $32 billion by 2030, a more than two-fold increase in the emerging market.
According to MarketsandMarkets, a leading intelligence and market research platform, this surge in investment is due to a volatile cyber threat landscape, which puts companies and government infrastructure at risk.
The Asian-Pacific region, including Pakistan, is likely to experience the fastest growth in cyber insurance. Pakistan has enhanced its digital footprint in recent years, but is the country ready for the incoming cyber insurance boom?
Cyber Insurance is Still in Its Infancy in Pakistan
Pakistan has historically had an agro-based economy. We have only recently ventured into the digital realm as businesses have slowly moved online, and governmental services have become digitised.
Nonetheless, digitalisation and technological advancement come with major risks, and Pakistan faces a severe crisis in cybersecurity. In 2023, cyberattacks increased by 17%.
The threat has only intensified with the vulnerable finance sector experiencing a 114% jump in malware incidents in 2024. Government institutions have also come under attack.
However, there remains a strong degree of indifference towards cyber threats in Pakistan, especially among small and medium enterprises. Furthermore, businesses have ignored cyber insurance, preferring to channel resources towards covering theft or fire-related insurance.
Fortunately, the government has recognised the risks and begun to lay the foundation. The National Cyber Emergency Response Team of Pakistan (PKCERT) has been established to tackle online threats and enhance cyber defences.
Amid escalating tensions with India and a volatile geopolitical landscape, the Securities and Exchange Commission of Pakistan (SECP) advised companies to bolster their cybersecurity operations.
The government, thus, is taking measures to protect Pakistan’s cyber ecosystem. A sustained attitude towards this cause could provide a robust policy and legislative framework to enhance cybersecurity.
A Safety Net in the Digital Age
In the coming years, Pakistan’s economy will become more digital, making cybersecurity a necessity for key business and government infrastructure.
In addition to implementing better security practices and reducing breaches, cyber insurance helps companies recover financially following significant cyber attacks. This would help businesses become more resilient, too.
By covering potential losses and enhancing security infrastructure, cyber insurance provides a safety net for companies, enabling them to run their operations smoothly.
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