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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

Cyber Security Insurance  | Coherent Market Insights

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

Cyber Security Insurance  | Coherent Market Insights

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.

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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 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.

Cyber security insurance policies help to cope-up with the financial loses which increase due to the cyber incidents. Additionally, the risk includes payment for the legal help, crisis communicators and the consumer refunds or the credits.

Market Dynamics:

Consumers are increasingly using public clouds and loading their personal information into several mobile apps to be able to conveniently shop, bank, communicate, and use other services over the devices to avoid data breaches is anticipated to boost the growth of the global cybersecurity insurance market. For instance the ITRC published a report in 2022 which stated there were 1,789 data breaches found in US. Blockchain and AI are two current emerging technologies anticipated to improve risk analytics software's capabilities and open up new commercial prospects. Integrating these technologies with risk analytics solutions would address some key concerns and issues that cybersecurity insurance organizations confront. This is expected to boost the growth opportunities of the market.  

On contrary, the coverage and price sensitivity severely limits insurer growth and profits over the long term. This negatively affects the growth of the various vertical industries in the market and is projected to hamper the growth of global cybersecurity insurance market.  

Key features of the study:

  • This report provides in-depth analysis of the global cyber security insurance market, and provides market size (US$ 9.29 Bn) and compound annual growth rate (21.1%) 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
  • Company Profiles:
    • XL Group Ltd
    • American International Group Inc.
    • Berkshire Hathaway Inc.
    • Zurich Insurance Co. Ltd
    • The Chubb Corporation
    • Aon PLC
    • Bin Insurer Holding LLC
    • Lockton Companies Inc.
    • SecurityScorecard Inc.
    • Allianz Global Corporate & Specialty
    • Munich Re Group

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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