Cyber Insurance Market

Global Cyber Insurance Market Size (2024 to 2029)

The global cyber insurance market is predicted to reach USD 9.56 billion in 2024 and USD 40.84 billion by 2029, growing at a CAGR of 33.7% during the forecast period.

With digital assaults turning into the standard nowadays, in any event, taking steps to venture into a worldwide epidemic, digital danger backup plans over the globe are seeing associations and end-clients scramble for assurance from conceivable information and data security disasters.  Data breaches that involve crucial and sensitive information such as account numbers, credit card numbers, driver's license numbers, social security numbers, and health records, which are a liability to any business, are generally covered by cyber insurance. Sadly, crimes such as data breaches and various cybercrimes have become too common these days. One of the nation’s largest banks, a discount retail chain, a well-known health insurer, an entertainment network, and the federal government have faced data breaches in the past couple of years, which resulted in major fines and legal fees along with a lot of headaches.

Global Cyber Insurance Market Drivers:

Rapidly increasing connected devices for private and business functions have created new vulnerabilities that cyber-attackers will exploit. Cloud computing, which is employed for outsourcing services and storage, brings tons of advantages and risks. Demand for the Cybersecurity insurance market has been driven by the increasing awareness of exposure to cyber threats and their potential impact on the company’s business. In line with a study, the typical value of an information breach was around USD 3.5 million and is anticipated to extend within the forecast period. These prices embody client notification value, the prices of coverage of a breach to the regulator, PR costs, and different legal expenses. The strengthening of rules on the loss of personally identifiable info (PII) has fuelled the demand for Cybersecurity insurance across all sectors. Corporations affected by an information breach would see a fine of 4-dimensional of their total world revenue in line with this regulation. Hence, an enormous deal has been seen in terms of organizations shopping for cyber insurance since last year, leading to the general growth of the global cyber insurance market.

An expansion in the selection of digital protection products because of the ascent in implications of digital assaults on open well-being, monetary success, and government network safety has prompted huge development in the digital protection market in recent years. Plus, expanded mindfulness about business interference (BI) digital dangers and the developing number of obligatory enactments for information security in various end-clients, for example, banking, medical care, and others, are a portion of the main considerations fuelling the cyber insurance market development.   In any case, an absence of normalized approaches and changes in dangers are extended to restrict market development. Despite what might be expected, digital protection has gigantic potential as it is generally an undiscovered market in creating economies. A developing number of cybercrimes in Asian nations, such as China and India, have prompted the appropriation of digital risk protection products among the different associations, which is required to give worthwhile occasions to the cyber insurance market during the forecast period.

Impact of COVID-19 on the global cyber insurance market:

Due to the coronavirus crisis, many workers in organizations operating across the globe are working remotely. As a result of this, enterprise virtual private network (VPN) servers are gaining prominence among corporations, with their handiness and security being a serious focus area. However, there's a chance that a company’s unpreparedness will eventually result in a misconfiguration of security in VPNs, which can additionally lead to the exposure of sensitive knowledge or info over the internet. This could additionally lead to the exposure of the operational devices to denial of service (DoS) attacks. Thus, the enhanced risk of cyberattacks, with organizations choosing the work-from-home model in the wake of the pandemic, is completely shaping the cyber insurance market outlook across all regions.

REPORT COVERAGE:

This research report on the global cyber insurance market has been segmented and sub-segmented based on the organization size, application, and region.

Global Cyber Insurance Market - By Organization Size:

• Large Enterprises 

• Small & Medium Enterprises 

The market is segmental into large Enterprises and small & Medium-Sized Enterprises.

Global Cyber Insurance Market - By Application:

• BFSI           

• IT & Telecom         

• Retail & E-commerce         

• Healthcare              

• Manufacturing      

• Government & Public Sector

The market is segmental into Banking & Financial Services, IT & telecommunication, Healthcare, Retail, and Others. The banking and financial services applications phase recorded the dominant market share in 2018. As a result of increasing financial operations, it's fully grown as a core business. It's liable to the next range of hacking incidents, such as large-scale fraud, breaches, and heists. Banking and financial services protection could be a matter of concern as these services are referred to as the foundation of economies. Over the forecast period, the healthcare application is predicted to grow at the best CAGR. Digital vulnerabilities are generated by speedy medical aid within the healthcare sector to permit quick access to client information.

Global Cyber Insurance Market - By Region:

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus

North America dominates the global cyber insurance market and accounts for around eighty-nine of the general markets. Necessary legislation concerning cybersecurity in many US states has light-emitting diode to higher penetration of cyber insurance policies. Europe has little penetration of cyber insurance liability policies compared to the U.S. The European Council has recently passed laws concerning knowledge protection and security, which is projected to be brought into result in 2018. These laws would oblige corporations to buy cyber insurance policies. Though Asia-Pacific accounts for a negligible share, it's expected to grow at a big CAGR throughout the outlook period due to a big increase in ransomware attacks.

KEY MARKET PARTICIPANTS:

The major companies operating in the global cyber insurance market include AXIS Insurance, BCS Insurance, XL, Beazley, Allianz, Liberty Mutual, Zurich Insurance, Munich Re, Berkshire Hathaway, AON, Lockton, CNA, AIG, Chubb, Travelers, etc.

RECENT HAPPENINGS IN THE MARKET:

• In February 2020, a virtual care insurance policy by Beazley Plc was launched to offer protection against the risks associated with technology-enabled lifestyle and healthcare management services in the US. Data recovery loss, dependent business interruption, e-crime, business interruption loss, crypto-jacking, and cyber extortion loss are covered under this product.

• In September 2019, Travelers Catastrophe Map Viewer, a new capability that provides brokers and agents with before-and-after photos of disaster-affected areas, was launched by the company The Travelers Indemnity. The best part is that after a catastrophe, it can provide high-resolution aerial images of the location before anyone can reach it. This enables the customers to get an immediate notification from their agents or brokers about the condition of their property and begin the claim process when necessary.