CYBER SECURITY INSURANCE MARKET ANALYSIS

Cyber insurance generally covers the business liability for a data breach comprising sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driving license numbers and health records.

Statistics:

The cyber security insurance market was valued at US$ 9.29 Bn in 2021 and is forecast to reach a value of US$ 53.7 Bn by 2030 at a CAGR of 21.1% between 2022 and 2030.

Figure 1: Global Cyber Security Insurance Market Value (US$ Mn) Analysis and Forecast, 2017 - 2030

Key Developments:

Leading market position business to serve rising demands by constant improvement in the solutions of the products , delivery services and also the digital abilities during the utilization of data and analytics in an intellectual method to enhance the customer experience. Moreover, Life and the Retirement section is aiming on making the comfort of business process by providing valuable solutions and increasing and deepening its supply partnership over various ways.

Improving the operational efficiency by streamlining processes and handling the environments to rise the competitive spirit, enhance the service and product capacity and facilitate the transfer of its targeted customer experience. The company constantly spends in the technology to enhance the operating efficiency and comfort of conducting the business for supply collaborators and the end-consumers.

Figure 2: Global Cyber Security Insurance Market Share (%), By Region, 2021

Market Drivers:

Driver 1:

Rise in compulsory cybersecurity regulations and legislations about cybersecurity to boost demand for insurance protection. This is anticipated to drive the growth of cybersecurity insurance market. For instance, in February 2020, the Californian assembly introduced a bill to make cybersecurity insurance mandatory to process regulated and protected personal information for all state contractors. 

Driver 2:

Increasing adoption of digitization, rapid developments in the technologies, cloud-based storage systems, Big Data, IoT, and artificial intelligence in business are frequently exposed to security breaches which have led many industries to adopt cybersecurity insurance. This is anticipated to boost the growth of the global cybersecurity insurance market.

Market Restraints:

Restraint 1:

The law does not allow most companies to report data breaches apart from those that affect consumer data, which means many hacks remain unreported. Therefore, the insurance industry suffers from a rampant bias in reporting that impedes the creation of policies in the markets. This is further anticipated to hider the growth of the global cybersecurity insurance market.

Restraint 2:

As governments and firms became more aware of security risks and the chances of financial loss due to threats, they increased funding in cybersecurity. Security solutions are heavily invested by businesses globally, but cybersecurity insurance is generally neglected. This is projected to hinder the growth of global cybersecurity insurance market.

Market Opportunities:

Opportunity 1:

The pandemic has made it easy and comfortable for the companies to develop their business in work from home environment which is offers a lucrative opportunity for the growth of the global cyber security insurance market. Moreover, the organizations have initiated the powerful IT rules which let the employees to work at distant places with less effect on the productivity. Many companies have spent in the network security & identity and avail the tools of management which lets the employees work safely on a specific network.

Opportunity 2:

Rising awareness among Internet users regarding the sensitivity of their private data and impending legal actions also prompt businesses to ensure information security by following the best cyber security practices which is expected to offer lucrative opportunities in the growth of global cyber security insurance market.

Market Trends/ Takeaways:

Trend 1:

The global cybersecurity insurance market has experienced substantial growth in the past, and this trend may continue in the near future. The current transition towards advanced technologies such as AI / ML, cloud, and APIs has forced enterprises to include cyber insurance in their cybersecurity plans. This is expected to boost the growth of the global cybersecurity insurance market.

Trend 2:

Insurers are hiring IT experts to build their internal capabilities and enhance their cyber underwriting operations. In the future, it is also predicted that insurers will build a cyber insurance ecosystem to take on cyber risks, leading to long-term, profitable growth. This acts as a key trend in the growth of cybersecurity insurance market.

Competitive Landscape:

Major companies operating the global cyber security insurance market are Berkshire Hathaway Inc., XL Group Ltd, Munich Re Group, Aon PLC, The Chubb Corporation, American International Group Inc., Allianz Global Corporate & Specialty, Zurich Insurance Co. Ltd, Lockton Companies Inc., Bin Insurer Holding LLC and SecurityScorecard Inc.