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Cyber security is an agreement that an individual or a group secure to assist in reducing the monetary risk linked with the online business. In return for a fee of monthly or quarterly, the insurance policy gets converted from risks to the insurer. Various companies purchase the insurance of cybersecurity schemes or the policies to overcome the extra costs which could lead to the physical destruction or the theft related to the digital assets. Such type of expenditure mostly comprises the cost of informing the customers that a breach in the security has incurred and the price of regulatory compliance fines.

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

Cyber Security Insurance  | Coherent Market Insights

North America held a dominant position in the Global Cyber Security Insurance Market Share in 2021

Statistics:

North America held dominant position in the Global Cyber Security Insurance Market in 2021, accounting for 54.0% share in terms of volume.

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

Cyber Security Insurance  | Coherent Market Insights

Key Developments:

Not given in the documents.

  1. On 28th June 2022, CyberAcuView a company that is formed by primary cyber insurers collaborated with CyberCube a cyber analytics company to strengthen cyber risk mitigation efforts.
  2. In April 2022, SecurityScorecard the leader in cybersecurity ratings announced integration with CrowdStrike which is a leading company in cloud-delivered protection end-points, identity and data, cloud workloads that will help companies to reduce security risks.
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Cyber Security Insurance Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 9.29 Bn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 21.1 % 2030 Value Projection: US$ 53.7 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By organization size: Small and Medium Enterprises (SMEs), Large Enterprises
  • By End-user industry: Healthcare, Retail, BFSI, IT and Telecom, Manufacturing, Other End-user Industries
Companies covered:

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.

Growth Drivers:
  • Adoption in executing cloud-based services
  • Rising data security breaches 
Restraints & Challenges:
  • Difficulty in implementing cyber insurance
  • Huge cost of cyber insurance policies

Market Drivers:

Driver 1:

Rising adoption of cloud-based services is expected to propel the growth of the global cyber security insurance market, as cloud computing is very rapidly increasing recent technologies, eradicating the earlier means of IT boundaries, making new markets, urging the mobility trend allowing developments in unified communications. Several technological investors and the industries are choosing the new insurance schemes to know the threats linked with storing the sensitive information in present cybersecurity landscape.

Driver 2:

Cloud computing do not require any physical infrastructure and the consumers can avail the arranged and unstructured information stored in the cloud from each location. Cloud computing on the contrary, is recurrently triggered by the cyber- attacks is fueling the growth of the global cyber security insurance market. Anyhow, it’s a continual challenge for the insurers to assume and keep ten risk management decisions for the cloud customers.

Market Restraints:

Restraint 1:

Insurers employed to offer their customers with plenty of cyber coverage which face a slew of restriction, and the shortage of the historical information at time of any accidents or shortage because of natural calamity. The law also do not permit the industries to reveal the cyber breaches apart from hampering the customer data. Hence, a notable amount of cyberattacks are still left unreported or unstated, this makes the insurers of the data needed to measure all the prices of the cybercrime, which makes it problematic from people to derive efficient cyber schemes.

Restraint 2:

There are several factors which impact the cost at which the insurance industries are choosing to provide coverage to the given risk, comprising the standards of the ambiguity in predicting the forecast loss, the size of the anticipated losses and the diversity of the risks covered. In cyber security insurance policy the difficulties or the problems in measuring a new threat and the potential for notable correlation over the insured is the reason anticipated to hamper the growth of the global cyber security insurance market.

Market Opportunities:

Opportunity 1:

The pandemic has made it easy and comfortable for the companies to develop in their business work in the remote area or the 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 frameworks which let the employees to work at distant places with less effect on the productivity. Many companies have spent in the network security and identity and avail the tools of management which lets the employees safely on a specific network.

Opportunity 2:

With the expansion in the market, the limitations of the insurer’s on the risk talking abilities are reducing with the whole growth and progress, which provides a lucrative opportunity and furthermore, insurers are fixing for the forthcoming cyber capital shortage which takes place in the event of a major cyberattack, and the organizations are also finding the creative ways to notify the challenge. Insurers are searching for the cap coverage increase the interest rates diversifying the large corporations.

Market Trends/ Takeaways:

Trend 1:

Insurers are progressively trying to offer insurance to the medium sized businesses as they try to be more reliable on the technology and actively and strongly face the cyberattacks. As per the Verizon’s Data Fraud Investigation Report, small organizations are at a huge threat of the data breaches and the cyberattacks. With a notable proportion of medium companies willing to buy insurance and the insurers are trying to take the benefit from the target market.

Trend 2:

The Cyberattacks on colonial Pipeline, meat supplier JBS and the Solar winds have made huge declarations, however, the fact is starting from the cyberattacks to the young business establishers working at the garages, it’s not a secured business anymore. As per the Cybersecurity Ventures trade, consumers or the appliances are anticipated to be attacked after an interval of 11 seconds and deteriorate.  

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.

Cyber security insurance policies aid to cope-up with the financial loses which rise due to the cyber incidents. Additionally, the risk includes payment for the legal help, crisis communicators and the consumer refunds or the credits. The organization comprises below 250 employees and are known as SMEs and the companies that have more than 250 employees is known as Large Enterprise according to the survey.

Market Dynamics:

Microsoft and At-Bay collaborated to provide data driven cyber insurance compensation with the help of decision making assistance to the market and also the organizations over the world approach a comprehensive method to reinforce their hybrid workforce with stronger, main visibility and also the control over the cloud devices, hence, rising the security and the productivity which is expected to drive the growth of the global cyber security insurance market.

The insurers are working on the precise and appropriate criteria for the cyberattacks and the effect of new technologies such as the IoT activities. Cyber insurance compensation can prove to be effectiveless and also it can expose the firms to certain damage, if the huge cyberattacks take place without any proper defined threats and a thought regarding its effects on the insurers is hampering the growth of the global cyber security insurance market.

The Artificial Intelligence or the Machine Learning permits the business to detect the patterns and advance the in-depth risk intelligence to obstruct the recurring threats and attacks. The usage of AI is not only restricted to scanning and pattern detection it is also expected to helpful in making social engineering , ransomware attacks and malware.

Key features of the study:

  • This report provides in-depth analysis of the global cyber security insurance market, and provides market size (US$ Billion) and compound annual growth rate (CAGR%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global cyber security insurance market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • 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.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global cyber security insurance market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global cyber security insurance market.

Detailed Segmentation:

  • Global Cyber Security Insurance Market, By Organization Size:
    • Small and Medium Enterprises (SMEs)
    • Large Enterprises
  • Global Cyber Security Insurance Market, By End-User Industry:
    • Healthcare
    • Retail
    • BFSI
    • IT and Telecom
    • Manufacturing
    • Other End-user Industries
  • Global Cyber Security Insurance Market, By Geography:
    • North America
    • Europe
    • Asia-Pacific
    • Rest of the World

Frequently Asked Questions

The global cyber security insurance market is estimated to be valued at US$11.61 Bn in 2022 and is expected to exhibit a CAGR of 21.1% between 2022 and 2030.
The rising adoption of cloud-computing services is anticipated to drive the growth of the market.
BFSI segment is the leading End-user industry segment in the market.
Problems in implementing and executing the cyber insurance is hampering the growth of the market
Major companies operating the 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.

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