Pune, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Cybersecurity Insurance Market Size Analysis:
“According to SNS Insider, the Cybersecurity Insurance Market Size was valued at USD 13.3 Billion in 2023 and is expected to reach USD 52.1 Billion by 2032, growing at a CAGR of 16.4% over the forecast period 2024-2032.”
Consistently Growing Cybercrime Threats
One of the main drivers contributing to the growth of the cybersecurity insurance market is the increasing number of cyberattacks, which escalate in frequency and become more sophisticated. Ransomware attacks, data breaches, and phishing schemes are reported to cause significant harm in the modern era. According to government reports, global costs associated with cybercrime are expected to grow to $10.5 trillion annually by 2025. As a result, businesses opt for all-inclusive insurance options to be able to cover all existing financial and operational risks that may be triggered by cyberattacks. Moreover, data protection laws also influence the need for cybersecurity insurance, as GDPR in the EU and CIRCIA in the U.S. establish heavy penalties for non-compliance.
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Major Players Analysis Listed in this Report are:
- Tata Consultancy Services Limited (TCS) (Cyber Insurance Advisory Services, Threat Management and Cybersecurity Insurance Solutions)
- Guy Carpenter & Company LLC (Cyber Risk Analytics Platform, Cyber Reinsurance Services)
- At-Bay Inc. (Cyber Insurance Coverage, Risk Monitoring Platform)
- Lloyds Bank PLC (Cyber Liability Insurance, Cyber Event Response Services)
- AXA SA (AXA Cyber Protect Insurance, AXA Risk Prevention Services)
- Cisco Systems Inc. (Cisco Secure Endpoint Protection, Cisco Umbrella (Cybersecurity Insurance Support))
- Chubb Limited (Cyber ERM (Enterprise Risk Management), Cyber Insurance Solution Suite)
- Apple Inc. (Apple Device Security (Data Protection), iCloud Secure Backup (Cyber Risk Mitigation))
- American International Group Inc. (AIG) (AIG CyberEdge Insurance, AIG Cyber Loss Prevention Services)
- Zurich Insurance Group (Zurich Cyber Security & Privacy Insurance, Zurich Risk Engineering Cyber Solutions)
- Marsh & McLennan Companies, Inc. (Marsh Cyber Policy Solutions, Marsh Cyber Risk Assessment Tools
- Munich Re Group (Munich Re Cyber Insurance Solutions, Munich Re Risk Intelligence Service)
- Travelers Companies, Inc. (Travelers CyberFirst Insurance, Travelers CyberRisk Assessment Services)
- Beazley Group (Beazley Breach Response (BBR), Beazley InfoSec Cyber Insurance)
- Aon PLC (Aon Cyber Insurance Brokerage Services, Aon Cyber Resilience Solutions)
- Allianz SE (Allianz Cyber Protect, Allianz Cyber Risk Consulting)
- Hiscox Ltd (Hiscox CyberClear Insurance, Hiscox Incident Response Services)
- Liberty Mutual Insurance (Liberty Cyber Liability Insurance, Liberty Cyber Incident Management Services)
- Sompo International (Sompo Cyber Liability Insurance, Sompo Cyber Risk Management Services)
- XL Group Ltd (AXA XL) (AXA XL Cyber Insurance, AXA XL CyberRisk Mitigation Solutions)
Cybersecurity Insurance Market Report Scope:
| Report Attributes | Details |
| Market Size in 2023 | USD 13.3 Bn |
| Market Size by 2032 | USD 52.1 Bn |
| CAGR | CAGR of 16.4% From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Key Regional Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe [Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]). Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America) |
| Key Growth Drivers | • Increased cybersecurity rules and legislation will increase demand for insurance cover • High rate of financial loss recovery to boost market growth |
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Segment analysis
In general, the growing number of data breaches and collecting ransomware payments and other financial losses has intensified the need for all-inclusive insurance packages, which would help organizations get through the financial burden these attacks bring. Besides, as more and more businesses opt for digital infrastructures, the risks associated with financial instability also increase, while cybersecurity insurance becomes an inseparable part of the risk management strategy. As a result, governments also feel that adequate response is necessary. For instance, the European Union's General Data Protection Regulation (GDPR) imposes strict fines on companies that fail to protect customer data, thus incentivizing organizations to invest in cyber insurance policies.
- By Insurance Type, The Standalone Segment Dominated in 2023, Tailored Segment to Experience Highest Growth
In 2023, the standalone segment dominated the cybersecurity insurance market, driven by the rising demand for comprehensive coverage of sophisticated cyber threats. Such policies are expanded to include liabilities, such as data breaches and ransomware attacks. The U.S. Department of Homeland Security refers to such policies as imperative to defend the country’s critical infrastructure, with their 2023 report highlighting a 45% increase in demand for standalone cybersecurity policies over the past year. The tailored segment was expected to grow at the highest compound annual growth rate through 2032. This can be attributed to the growing need for customized solutions that would address the risk profiles of each individual business. A study carried out by the U.S. Cybersecurity and Infrastructure Security Agency in 2023 showed that as many as 62% of enterprises prefer tailored policies since their risk landscape is too complex. Some of the policies for medium and large enterprises contain specific clauses that spell out what the insurance should cover, including loss of intellectual property and asset value, financial loss, operational downtime, and severe liability to stockholders. There is no wonder such policies remain extremely popular among business owners worldwide.
- By Insurance Coverage, Cyber Liability Segment Held the Largest Market Share
The cyber liability segment dominated the market and held the largest market share in 2023. Cyber risk insurance covers litigation and settlements that arise in the event of a data breach. Cyber liability insurance covers the costs associated with data breach incidents, including payment of legal fees, public relations costs, and costs of notifying subscribers about the data breach. By analyzing data from the U.K. National Cyber Security Centre, it can be concluded that 85% of the businesses affected by data breaches in 2023 demonstrated extremely high legal expenses. Another factor that has triggered the growth of investments in the cyber liability insurance market is the introduction of the U.S. Cyber Incident Reporting for Critical Infrastructure Act in 2023, this legislation mandates companies in critical sectors like energy, healthcare, and finance to report cyber incidents within 72 hours. As a result, more businesses are turning to cyber liability policies to comply with these stringent requirements, further bolstering the segment's dominance in the market.
Cybersecurity Insurance Market Segmentation:
By offering
- Solution
- Cybersecurity insurance analytics platform
- Disaster recovery and business continuity
- Cybersecurity solution
- Cyber risk and vulnerability assessment
- Cybersecurity resilience
- Service
- Consulting/ Advisory
- Security awareness training
- Others
By coverage
- Data breach
- Data loss
- Denial of service and down-time
- Ransomware attacks
- Others
- Cyber liability
- Type
- Data protection and privacy costs
- Non-compliance penalty
- Brand and related intellectual property protection
- Others
- Source/ Target
- Internal
- External
By Compliance Requirements
- Healthcare Compliance
- Financial Services Compliance
- GDPR Compliance
- Data Privacy Compliance
- Others
By insurance type
- Standalone
- Tailored
By end user
- Technology provider
- Insurance companies
- Third-party administrators, brokers, and consultancies
- Government agencies
- Insurance provider
- Financial services
- IT and ITES
- Healthcare and life science
- Retail and ecommerce
- Telecom
- Travel, tourism, and hospitality
- Others
Regional Dominance | North America Led the Cybersecurity Insurance Market
North America is the leading region in the cybersecurity insurance market, due to its highly developed digital infrastructure and the high rate of cyberattacks in the region. As per the U.S. Federal Bureau of Investigation, North America had 900,000 reported cyber incidents in 2023, with estimated damages of over $7 billion. Further, the U.S. government published the National Cyber Strategy in 2023, which includes an emphasis on increased cooperation between the private sector and government agencies. Due to these developments, it is unsurprising that the region is the leading source of revenue for companies that provide cybersecurity insurance, particularly with the increasing value and volume of digital assets and sensitive data in sectors such as healthcare and finance. Additionally, North America has a highly developed regulatory environment, with laws such as the California Consumer Privacy Act and other state-level regulatory protections in the region, which further incentivizes business investments in insurance that protects from financial losses caused by cyberattacks.
Latest News in the Cybersecurity Insurance Market:
In August 2024, AIG announced the launch of a new cyber insurance policy tailored for small and medium enterprises (SMEs), focusing on ransomware protection and rapid incident response services.
July 2024, AXA expanded its global cyber insurance offerings by introducing enhanced cyber liability coverage in Europe, specifically designed to address the evolving threat landscape in the region.
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Key Takeaways
- To provide a comprehensive analysis of the cybersecurity insurance market, highlighting key drivers, market segmentation, and regional dominance, while assessing the impact of government regulations and cyber threats.
- The report should offer in-depth insights into market trends, including analysis of insurance types and coverage, growth opportunities, and key developments by industry players.
- North America leads the market due to high incidence of cyberattacks and strong regulatory frameworks.
Table of Contents – Major Key Points
1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics Impact Analysis
5. Statistical Insights and Trends Reporting
6. Competitive Landscape
7. Cybersecurity Insurance Market Segmentation, By offering
8. Cybersecurity Insurance Market Segmentation, By coverage
9. Cybersecurity Insurance Market Segmentation, By Compliance Requirements
10. Cybersecurity Insurance Market Segmentation, By Insurance type
11. Cybersecurity Insurance Market Segmentation, By end user
12. Regional Analysis
13. Company Profiles
14. Use Cases and Best Practices
15. Conclusion
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