Global Cybersecurity Insurance Market By Offering (Solution and Services), By Insurance Type (Standalone and Tailored), By Compliance Requirement(Healthcare Compliance, Financial Services Compliance, GDPR Compliance, Data Privacy Compliance and Other Compliance) By End-Industry, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Oct. 2023
- Report ID: 73692
- Number of Pages: 306
Global Cybersecurity Insurance Market is likely to hold a valuation of USD 62.7 billion by 2032. As the average global market rises, the Cybersecurity Insurance industry is expected to grow by 18.8% from 2023 to 2032.
Cyber insurance helps businesses reduce the threat of data breaches and cyber attacks, protecting organizations from costs associated with Internet-based attacks that affect I.T. infrastructure, information governance, and policy – typically not covered by conventional commercial liability or insurance policies, with increased cybersecurity risks and data breach actions prompting organizations to establish Cyber insurance strategies. In particular, small and medium-sized enterprises are being targeted by cybercriminals, which will increase demand for new cyber insurance products from smaller enterprises.
Note: Actual Numbers Might Vary In Final Report
- In 2022, the Global Cybersecurity Insurance Market was valued at US$ 11.2 Billion.
- The market is estimated to register the highest CAGR of 13.4% between 2023 and 2032.
- Increasing deployment of cloud-based services to impede market growth across various sectors is driving the growth.
- High costs restrict the growth of the market.
- Data privacy concerns may create tension among the countries and, thereby, affect the growth of the market.
- Cybersecurity liability Leads the Market with a Major Revenue Share of 44.6%.
- BFSI Segment Holds the Major Revenue Share of 26.4% to Dominate the Market.
- The Standalone segment is the most dominant, with the highest revenue share for the forecast period
- Use of Blockchain technology with artificial intelligence(A.I.) for risk analysis to boost market opportunities
- Microsoft Corp. will invest more than US$1 billion each year in cybersecurity for the foreseeable future
- North America leads the market with a major revenue share of 39.6%
- key players in the market are BitSight, AIG, The Travelers Companies, Hiscox, SecurityScorecard, Liberty Mutual, Axa XL, The Hartford, Zurich Insurance Group, Aon, Allianz, Axa, Berkshire Hathaway, HSB, Munich Re, RedSeal, CyberArk, and Other Key Players
Increased the sophistication and frequency of cyber-attacks.
Cyberattacks that are massive in scope are increasing across the globe, which result in significant financial losses to businesses, individuals, and governments. Cybercriminals attack a variety of I.T. infrastructures with the aim of pursuing reputational, financial, political, or even radical motives. Ransomware such as WannaCry, Petya, NotPetya, and BadRabbit have severely affected businesses. For example, The SamSam ransomware attack slowed down the municipal service in Atlanta in the U.S., requiring the payment of USD 50,000.
Cyber-related threats impede the productivity of businesses and require the protection of vital I.T. infrastructure as well as data. Companies are increasingly investing in cybersecurity solutions and services to minimize the threat of data security breaches. As cyberattacks get more sophisticated, businesses across the world look to insurance for cybersecurity to protect themselves from the financial burden of cyberattacks involving swarms.
A lack of understanding regarding cybersecurity insurance and hesitation to choose security insurance instead of cybersecurity products.
Due to the growing awareness of security threats and the increasing number of cyberattacks, organizations, and governments have increased their security spending. Yet, many companies do not consider cybersecurity insurance that can aid in preventing financial loss. The cost per year of cybercrime is estimated to exceed USD 1.5 trillion, and only a small portion of it is insured by insurance firms. A lack of understanding and knowledge about cybersecurity insurance can hinder the growth of the market, with certain companies mistaking it for insurance for errors and mistakes. Globally, businesses must realize that the financial impact of an attack on security can exceed even the cost of acquiring cybersecurity insurance.
Geopolitical Impact Analysis
National Security Implications:
- Risk Mitigation: Cybersecurity insurance encourages organizations to invest in robust cybersecurity measures to lower their insurance premiums, indirectly contributing to national security by reducing the overall risk of cyberattacks.
- Critical Infrastructure Protection: Governments may encourage or mandate cybersecurity insurance for critical infrastructure providers, ensuring essential services remain operational in the face of cyber threats.
- Cyber Deterrence: The availability of cybersecurity insurance can influence nation-state actors’ decisions regarding cyber espionage or cyberattacks, potentially affecting the likelihood of such attacks.
- Market Growth: The expansion of the cybersecurity insurance market can impact international markets and economic stability, becoming a significant component of the global financial services industry.
- Risk Transfer: Cybersecurity insurance helps organizations and governments manage the financial fallout of cyberattacks, contributing to economic stability by providing a mechanism for transferring financial risk.
By Insurance Coverage Analysis
cybersecurity liability Leads the Market with a Major Revenue Share of 44.6%.
In terms of insurance coverage, the cyber liability segment will likely have a greater market share over the forecast period. Cyber risk insurance, also known as cyber liability insurance, assists businesses in recovering from the financial burdens resulting from cyber-attacks, data breaches, and other cyber-attacks. This insurance covers the costs paid by the business itself (first-party claims) and also expenses arising out of claims from external entities (third-party claims).
The policy covers a variety of costs like investigation costs and legal proceedings, business losses, privacy concerns, extortion, and even notifications. Because of the growing complexity of cyber-attacks as well as the more stringent regulations, companies are urged to implement cybersecurity insurance policies actively. With first-party as well as third-party protection, Cyber liability insurance policies will help insurers reduce the negative effects of a security incident that could cause significant losses to businesses. Principal companies in the cyber insurance market are Allianz Group, AIG, Chubb, Aon, Zurich, AXA, and Berkshire Hathaway, among others.
By Insurance Type Analysis
The Standalone segment is the most dominant, with the highest revenue share for the forecast period.
In accordance with the type of insurance you choose, the cybersecurity insurance market is classified into tailor-made and standalone. Of these, the standalone segment has dominated this market with the largest revenue share of 63.6%. With the purchase of insurance that is standalone, an organization is shielded from legal action arising out of privacy or security violations that result from a failure to secure sensitive data. In addition, standalone insurance covers the full spectrum of risks to assets, such as data loss or destruction, business interruption, and loss of money transfer.
Note: Actual Numbers Might Vary In Final Report
By End-Use Industry Analysis
BFSI Segment Holds the Major Revenue Share of 26.4% to Dominate the Market.
Based on end-users, the cybersecurity insurance market is divided into healthcare, retail BFSI, as well as I.T. and telecom manufacturing, and others. Of these categories, the BFSI segment is the most dominant, with the highest revenue share of 47.2% over the forecast period. The banking industry is a popular security risk for hackers because of the huge amount of data that is generated. This will likely drive an expansion of the segment by rising demand for cybersecurity insurance within the BFSI sector.
Key Market Segments
By Insurance Type
By Compliance Requirement
- Healthcare Compliance
- Financial Services Compliance
- GDPR Compliance
- Data Privacy Compliance
- Other Compliance
By Insurance Coverage
- Data Breach
- Data Loss
- Cybersecurity Liability
- IT & Telecom
- Government agencies
- Other End-Users
Exclusion of Cybersecurity Insurance Coverage from Property and Casualty Insurance Coverage (P&C) policies
With the increasing use of social media and cyber attacks, cyber risk is quickly increasing. Prior to this development, casualty insurance offered coverage against third-party damages to tangible computer-related property. However, with the rise of digital devices and technological advancements, casualty insurance carriers have recognized that cyber exposures have grown substantially. Pressure from both the E.U. General Data Protection Regulation (GDPR) and Prudential Regulatory Authority (PRA) is pushing insurance companies to address cyber-related security risks through creating dedicated security insurance programs. Insurance companies and regulators are working on creating separate cybersecurity insurance policies to increase understanding and remove “silent cyber claims.” Therefore, insurers anticipate adopting distinct cybersecurity insurance policies in order to limit accidental exposure to cyber coverage.
Increasing adoption of crypto insurance services
Crypto ownership worldwide has seen rapid expansion. Unfortunately, with increasing crypto ownership has come rising threats of cryptocurrency hacks of multimillion-dollar hacks that leave investors out millions while costing the sector billions of dollars. One such instance occurred in March 2022 when hackers stole approximately USD 540 Million worth of crypto from the Ronin blockchain project, making this one of the biggest cryptocurrency thefts on record.
Companies seeking to address crypto-threats have invested in insurance policies as an additional precaution against risk. According to research from Goldman Sachs, 11% of U.S. insurance companies have shown interest or plan on investing in cryptocurrency investments. Insurance providers anticipate growing and strengthening their return from these investments in the coming years. Thus, rising cyber threats and insurance firms investing in crypto insurance should have a positive effect on market growth over the forecast period.
North America dominates the global cybersecurity insurance market with a Major Revenue Share of 39.6%
North America has a high-tech infrastructure and widespread use of cyber-related technology. It is predicted to have the biggest market share in terms of size. The U.S. specifically offers an opportunity for cybersecurity insurance providers due to the strict regulations and a wide range of industries. Cyberattacks can have a significant economic impact on businesses of all sizes, which includes crucial industries.
According to a report from Emsisoft published in The New York Times, 205,280 businesses across North America fell victim to ransomware-related attacks in 2019. Due to the increased rate of attacks and the increasing use instances of Bring Your Device (BYOD), especially in connection with the COVID-19 virus, U.S. and Canadian enterprises recognize the importance of safeguarding their data and minimizing financial losses by implementing cyber security insurance policies.
Note: Actual Numbers Might Vary In Final Report
Key Regions and Countries Covered in this Report
- North America
- The US
- The UK
- Rest of Europe
- South Korea
- New Zealand
- Rest of APAC
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- Rest of MEA
Key Player Analysis
In the rapidly evolving landscape of cybersecurity, the global cybersecurity insurance market has become a critical component for organizations looking to mitigate the financial risks associated with cyber threats and data breaches. Merger and acquisition (M&A) activities within this market segment are indicative of its growing importance and the need for insurers to expand their capabilities to address the ever-changing nature of cyber risks. One of the key players, Chubb, has a strong presence in the cybersecurity insurance market. While there haven’t been any major acquisitions in recent years, they have been actively developing their cyber insurance portfolio to address emerging risks.
Top Key Players in the Cybersecurity Insurance Market
- The Travelers Companies
- Security Scorecard
- Liberty Mutual
- Axa XL
- The Hartford
- Zurich Insurance Group
- Berkshire Hathaway
- Munich Re
- Other Key Players
- Microsoft unveiled Defender as an SME security system to reduce cyber risk and support SMB security systems. This endpoint security solution features Endpoint Detection and Response (EDR).
- AttackIQ entered into an integration partnership with Vectra, an Al-based threat detection and response platform, to offer its PCAP product alongside Vectra Al Platform to customers for testing effectiveness.
- BitSight and Marsh McLennan joined forces in November 2021 to improve cybersecurity performance and efficiency for organizations while helping reduce cyber risk. Marsh McLennan’s Cyber Risk Analytics Center leverages BitSight rating data, which assists clients in tracking the performance of their cyber security systems.
Report Features Description Market Value (2023) US$ 13.3 Bn Forecast Revenue (2032) US$ 62.7 Bn CAGR (2023-2032) 18.8% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Offering (Solution and Services), By Insurance Type (Standalone and Tailored), By Compliance Requirement(Healthcare Compliance, Financial Services Compliance, GDPR Compliance, Data Privacy Compliance, and Other Compliance), By End-User (Healthcare, Retail, BFSI, I.T. & Telecom, Manufacturing, Government agencies and Other End-Users Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape BitSight, AIG, The Travelers Companies, Hiscox, Security Scorecard, Liberty Mutual, Axa XL, The Hartford, Zurich Insurance Group, Aon, Allianz, Axa, Berkshire Hathaway, HSB, Munich Re, RedSeal, CyberArk and Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is Cybersecurity Insurance?
Cybersecurity insurance (also referred to as Cyber Risk insurance or simply Cyber Insurance) protects financial losses due to cyberattacks, data breaches and other cybersecurity incidents.How big is the Cybersecurity Insurance Market?
Global Cybersecurity Insurance Market is likely to hold a valuation of USD 62.7 billion by 2032. As the average global market rises, the Cybersecurity Insurance industry is expected to grow by 18.8% from 2023 to 2032.What is the market trend in Cybersecurity Insurance Market?
One key trend in cybersecurity insurance market is an increasing interest for coverage against ransomware attacks, an type of malware which encrypts victims' files before demanding payment in return for accessing decryption keys. Since these incidents have become increasingly frequent and costly, businesses are turning increasingly toward cybersecurity insurance as protection from these costly attacks. Another trend in the cybersecurity insurance market is an increasing emphasis on risk management. Cybersecurity insurers increasingly work closely with clients to help identify and mitigate cyber risks; providing them with resources and expertise related to this field.What are the challenges for the Cybersecurity Insurance industry?
One of the greatest obstacles facing cybersecurity insurance industry is adaptability of coverage in response to emerging cyber threats. New threats emerge regularly and insurers need to adapt quickly their coverage in response to them. One challenge faced by cybersecurity insurers is an absence of data regarding cyberattacks and data breaches, making it hard for insurers to accurately assess risk and set premiums accordingly.Why is Cybersecurity Insurance important for businesses?
Cybersecurity Insurance helps businesses mitigate the financial impact of cyber incidents. It covers costs such as data breach response, legal fees, notification expenses, and potential liability, safeguarding a company's financial stability.
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