Rising number of Brazilian data breaches to drive boom in demand for cyber insurance in 2023

Cyber security spending set to rise again next year

Since the beginning of the pandemic the numbers of cyber-attacks on business and individuals in Brazil has risen dramatically with a knock-on effect on how much is being spent on cyber security to protect data as well as a rapid increase in the subsequent liability from data breach incidents.

In response to the growing threat of cyber, the Brazilian General Data Protection Law or ‘LGPD’ which mirrors the European GDPR was passed in September 2020 and is the primary source of legal protection for cyber breaches. The National Data Protection Authority was created by the LGPD and is increasingly busy investigating data breach incidents in Brazil, and where appropriate also applying penalties and fines.

That growth in both spending on cyber security and insurance looks set to rise again next year. The demand for cyber insurance in Brazil looks set to boom in 2023 after it soared again in 2022 with an increase of more than 40% on the previous 12 months according to the Brazilian National Council of Insurers while spending on cyber security in Brazil overall topped $1billion for the first time in 2022 and is predicted to continue to significantly increase in 2023.

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