Cyber Insurance Market is valued at USD 111.77 Billion in 2022 and is expected to reach USD 581.28 Billion by 2029 with a CAGR of 26.56% over the forecast period.
Cyber-insurance is nothing, but a specialty appearances insurance product projected to defend businesses, and individuals delivering facilities for such businesses, from Internet-based hazards, and further usually from risks involving to information governance liability, information technology infrastructure, information privacy, and events associated thereto. It normally involves damages from network security breaches, indemnification from lawsuits associated to data breaches, loss of privacy, and others. Cyber insurance shields businesses against digital risks, such as malicious hacks, data breaches, malware, distributed denial-of-service (DDoS), and ransomware.
It also recommends economic analysis for sensitive customer data, comprising health records and credit card, social security, account, and driver's license numbers. It alerts customers regarding cybersecurity cases, rebuilds their characters, recovers cooperated data, and repairs harmed computer systems. Currently, many insurers all-inclusive are proposing personalized plans depending on business obligations. These plans cover up legal fees and payments for physical injury and income loss. In the Early stage of the 1990s, emphasis on the extensive merits of cyber-insurance, or protocols derived from digital cash to facilitate risk reorganization in dispersed systems.
During the COVID-19 pandemic crisis, several governments and regulatory authorities support both public and private organizations to adopt new practices for driving remotely and keeping social distancing. With the widespread use of WFH, internet access around the corners of the globe is inclined towards the use of digital technologies and this is creating a positive impact on cyber insurance market globally.
The global cyber insurance market is segmented on the basis on component, insurance type, organization size, end-use industry, and region & country level. Based on component, the cyber insurance market is classified into solution and services. Based on insurance type, the market is categorized into packaged and stand-alone. Based on organization size, the cyber insurance market is categorized into small and medium enterprises and large enterprises. Based on end-use industry, the cyber insurance market is divided as BFSI, healthcare, IT and telecom, retail, and other.
The regions covered in Cyber Insurance Market report are North America, Europe, Asia-Pacific, and Rest of the World. Based on country level, the market of in Cyber Insurance is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, Southeast Asia, Middle East Asia (UAE, Saudi Arabia, Egypt) GCC, Africa, etc.
Global Cyber Insurance Market reports cover prominent players like
On June 3rd, 2021: Datastream Cyber Insurance announced a step-change in the cyber insurance sector with the launch of its Global Partner Program for MSPs. The program has been designed to reduce the risk and impact of cybersecurity events for small and medium sized businesses across the US and make the process of integrating insurance into a cyber risk program far simpler and more efficient. It also gives those at the forefront of the battle against cyber criminality, the MSP, MSSP and VAR community, a dedicated resource in the cyber insurance space so they can complete the protection their clients need.
The escalating number of cyber-attacks in several sectors is one of the prominent factors significantly driving the growth of the cyber insurance market throughout the world. Several sectors including banking, healthcare, retail, financial institutions, and others have headed to the data security and reputational loss concerns. For instance; in February 2018, the Central Bank of Russia circulated that a band of hackers controlled to obtain around $6 million from a regional bank through their SWIFT system. Also, according to the Federal Bureau of Investigation, cyberattacks have risen by 300% in 2020. There will be almost 3.5 million open cybersecurity jobs waiting to be filled in 2021, with around 500,000 open positions in the United States. The increasing cyber-attacks are responsible to lead the demand for cyber insurance worldwide.
Cyber insurance protects against these cyber-attacks and lessens the losses. In addition, the surge in mandatory cybersecurity guidelines and legislation regarding cybersecurity are also supplementing the market growth. For example; the Californian assembly launched a bill to create cybersecurity insurance mandatory to procedure regulated and secure personal data for all state contractors in February 2020.
However, escalating cybersecurity insurance costs may hamper the cyber insurance market growth. In spite of that, the firms are broadening cyber liability to supply chains, delivering new opportunities for cyber insurance suppliers to innovate the insurance products in the market which may offer more opportunities for the further growth of the market.
On a geographic basis, North America is expected to dominate the growth of the cyber insurance market owing to various factors such as the expansion of the retail industry, innovations, and developments in cyber insurance in this region. For instance; Cynet, in its lately distributed State of Breach Protection 2020 Report, has revealed that around 25% of security alerts are left unattended each day in the United States. Also, according to the ITRC’s latest anticipated, the average number of data breaches increased to 1473 breaches in 2019 faced by the United States. These various innovations and developments in the cyber insurance sector are resulting in the demand for cyber insurance.
The Asia Pacific is projected to become the fastest-growing market for cyber insurance owing to the rising use of electronic devices for storing data. Cyber insurance helps to protect computer systems or data against injuries caused by electronic threats. The ever-increasing adoption of electronic devices is responsible to improve the demand for cyber insurance in this region. For instance; China is the world’s largest producer, consumer, and exporter of consumer electronics devices for storing data. China is considered as the world’s biggest producer of mobile phones, computers, and televisions, respectively producing over 90 percent, 90 percent, and 70 percent of these devices in 2018. As a number of usages of electronic devices for storing data increases, the demand for cyber insurance for protection is rising eventually.
Middle East and Africa
|Historical data||2015 - 2022|
|Forecast Period||2022 - 2029|
|Market Size in 2022:||USD 111.77 Billion|
|Base year considered||2021|
|Forecast Period CAGR %:||26.56%|
|Market Size Expected in 2029:||USD 581.28 Billion|
|Tables, Charts & Figures:||175|
|Key Players/Companies||Allianz, American International Group, Inc., Aon plc, AXA, Lloyd’s of London Ltd., Lockton Companies, Inc., Munich Re, The Chubb Corporation, Zurich, Tata Consultancy Services Limited , Guy Carpenter and Company LLC., At-Bay Inc., Cisco Systems Inc., Apple Inc., Beazley Group PLC, and others.|
|Segments Covered||By Component, By Insurance Type, By Organization Size, By End-Use Industry|
|Regional Analysis||North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa|