Cyber Insurance Market (Updated Version Available)
Cyber Insurance Market Size, Share & Trends Analysis, By Insurance type (Standalone and Tailored), Coverage type (First party and Liability coverage), Organization size (Large enterprise, and Small & Medium enterprise), End-User (BFSI, IT & Telecom, Healthcare, Retail, and Others), By Region, Forecast Period-2022 - 2030
Report ID : RI_673758 | Date : February 2023 |
Format : 
Key Market Overview:
The Cyber Insurance Market was valued at USD 12.74 Billion in 2022, registering a CAGR of 25.2% during the forecast period (2022-2030), and the market is projected to be worth USD 79.40 Billion by 2030.
Cyber insurance is generally associated with business liability for data breach which include sensitive information such as credit card number, driver\'s license number, social security number, and customers health records. Cyber insurance aid with customer notification for data breach, recovering compromised data, and restoring personal identities. This prevents in risk of cyberattack and data breaches. It provides coverage to first party and claims for third parties to avoid the risk of cyber threat activities.
Rapidly increasing cybercrime events and risk to cybersecurity led to rising adoption of cyber insurance by various industry verticals such as BFSI, IT & telecommunication, healthcare, retail, energy & utilizes, transportation, and manufacturing. The growing segments such as internet banking, mobile banking, online shopping, and digital payment are targeted by hackers due to availability of large volume of customer\'s data. For instance, as per HIPPA journal, in 2020 around 29.1% of monthly data breaches were recorded. Thus, risk of data breaches in industries such as BFSI, healthcare, IT & telecommunication, retail, and manufacturing led to rising implementation of cyber insurance service to protect the data. Additionally, adoption of artificial intelligence (AI) and blockchain technology for risk analysis tends to be the opportunity for advancement of cyber insurance system. However, complex coverage terms, and high cost of cybersecurity insurance is hindering the growth of cyber insurance market.
Cyber Insurance Market Scope:-
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Market Dynamics:
Driver:
Rising cybercrime events and risk to cybersecurity is driving the growth of cyber insurance market.
Rising cybercrime events and risk to cybersecurity is driving the growth of cyber insurance market.
Rapidly increasing cybercrime events and risk to cybersecurity led to rising adoption of cyber insurance by various industry verticals such as BFSI, IT & telecommunication, healthcare, retail, energy & utilizes, transportation, and manufacturing. According to Checkpoint, ransomware attacks in 2020 have been increased by 93% which affect security system of companies. Thus, cyberattack activities are boosting the growth of cyber insurance market.
COVID-19 Impact
The COVID-19 pandemic encourages both public and private organizations to implement new practices of remote working. The WFH trends and internet penetration across the globe led to rapid digitalization, which drive the need of protective measures against cybercrime events and cybersecurity. Thus, cyber insurance solution enables the organizations to ensure the security from the threat of cybercrime events.
Restraint:
High cost of cybersecurity insurance is hampering the growth of cyber insurance market.
High cost of cybersecurity insurance is hampering the growth of cyber insurance market.
Cyber insurance provide protection from cybercrime events led to increasing demand for cyber insurance policies. However high cost of cyber insurance and complex coverage terms are hindering the growth of cyber insurance market. Moreover, cyber insurance companies are applying coverage cost to cover additional services such as negotiation with hackers and data recovery assistance for ransomware attack. Thus, rising prices of cybersecurity insurance is limiting the growth of cyber insurance market.
Cyber Insurance Market Segmentation:
By Insurance type
The Insurance type segment is bifurcated into Standalone and Tailored.
Standalone type of insurance provide protection against lawsuits filed for breaches of security to protect sensitive information. Additionally, standalone type of insurance is associated with risk assessments, such as data destruction, business interruption, and funds transfer loss. Thus, standalone type of insurance hold major share of cyber insurance market.
Tailored insurance type segment witness rapid growth of cyber insurance market due to availability of customized cyber insurance services. Tailored insurance is rapidly adopted due to its property of risk coverage among various industry verticals such as BFSI, healthcare, IT, and telecommunication.
By Coverage type
The coverage type segment is divided into First party and Liability coverage.
First party coverage demonstrates major market share of cyber insurance market. First party coverage is associated with the cases where victims are directly involved in the event. It provides financial assessment for industry verticals to protect from cyberattacks and data breaches. Thus, increasing cyber threat activities fuel the demand of first party coverage for cyber insurance market.
Liability or third-party coverage anticipate rapid growth of cyber insurance market due to its rising demand for risk management programs. Liability coverage offers several benefits such as data breaches coverage and business interruption loss coverage.
By Organization size
The organization size segment is bifurcated into Large enterprise, and Small & Medium enterprise.
Large enterprise holds largest revenue share for cyber insurance market owing to rising adoption of cyber insurance services. Cybercrime events have extensively increased in large enterprises, resulting rising investments in risk management and rapid adoption of cybersecurity insurance services led to boost the growth of cyber insurance market in large enterprise.
Small & medium enterprise witness rapid growth of cyber insurance market due to rising threat of cybercrime events and increasing concern related to cybersecurity.
By End Use
The end-user segment is categorized into BFSI, IT & Telecom, Healthcare, Retail, and Others.
BFSI holds major share of cyber insurance market due to rising inclination towards digitalization and internet banking leading to increasing cybercrime events. The vast data generation in financial sector is subjected to easy target for the hackers. Thus, risk of cyberattacks is boosting the growth of cyber insurance market.
Healthcare segment anticipate fastest growth of cyber insurance market owing to rapid adoption of insurance policies in healthcare sector to protect patient\'s personal data. For instance, between 2009 to 2022, 5,150 data breaches involving 500 records have been reported.
By Region
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
North America demonstrates major market share of cyber insurance due high risk of data privacy and increasing cyberattack events. Additionally, existence of dominant service providers fuel the growth of cyber insurance market in the region.
Asia Pacific region witness fastest growth of cyber insurance market due to increasing adoption digitalization and cybersecurity insurance service to protect the organizations from cybercrimes. The increasing event of ransom attack is boosting the growth of cyber insurance market. For instance, according to Microsoft Research, in 2020, 7% of total ransom attack incidents was demonstrate in Asia Pacific region, with Revil and Maze being most common ransomware behind 50% of successful attacks.
Cyber Insurance Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Cyber Insurance Market. Key players in the market include-
• American International Group Inc.
• Tata Consultancy Services Limited
• Beazley Group PLC
• Guy Carpenter and Company LLC.
• At-Bay Inc.
• Chubb Limited
• Lloyds Bank PLC
• AXA SA
• Cisco Systems Inc.
• Apple Inc.
• Zurich Insurance Group
• AON Plc
• Axis capital
• Lockton
• Zeguro
• CYE
• Fairfax financial
The Cyber Insurance Market was valued at USD 12.74 Billion in 2022, registering a CAGR of 25.2% during the forecast period (2022-2030), and the market is projected to be worth USD 79.40 Billion by 2030.
Cyber insurance is generally associated with business liability for data breach which include sensitive information such as credit card number, driver\'s license number, social security number, and customers health records. Cyber insurance aid with customer notification for data breach, recovering compromised data, and restoring personal identities. This prevents in risk of cyberattack and data breaches. It provides coverage to first party and claims for third parties to avoid the risk of cyber threat activities.
Rapidly increasing cybercrime events and risk to cybersecurity led to rising adoption of cyber insurance by various industry verticals such as BFSI, IT & telecommunication, healthcare, retail, energy & utilizes, transportation, and manufacturing. The growing segments such as internet banking, mobile banking, online shopping, and digital payment are targeted by hackers due to availability of large volume of customer\'s data. For instance, as per HIPPA journal, in 2020 around 29.1% of monthly data breaches were recorded. Thus, risk of data breaches in industries such as BFSI, healthcare, IT & telecommunication, retail, and manufacturing led to rising implementation of cyber insurance service to protect the data. Additionally, adoption of artificial intelligence (AI) and blockchain technology for risk analysis tends to be the opportunity for advancement of cyber insurance system. However, complex coverage terms, and high cost of cybersecurity insurance is hindering the growth of cyber insurance market.
Cyber Insurance Market Scope:-
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 79.40 billion |
| CAGR (2022-2030) | 25.2 % |
| Base Year | 2021 |
| By Insurance type | Standalone and Tailored |
| By Coverage type | First party and Liability coverage |
| By Organization size | Large enterprise, and Small & Medium enterprise |
| By End-User | BFSI, IT & Telecom, Healthcare, Retail, and Others |
| By Geography | |
| Key Players | American International Group Inc., Tata Consultancy Services Limited, Beazley Group PLC, Guy Carpenter and Company LLC., At-Bay Inc., Chubb Limited, Lloyds Bank PLC, AXA SA, Cisco Systems Inc., Apple Inc., Zurich Insurance Group, AON Plc, Axis capital, Lockton, Zeguro, CYE, Fairfax financial |
Market Dynamics:
Driver:
Rising cybercrime events and risk to cybersecurity is driving the growth of cyber insurance market.
Rising cybercrime events and risk to cybersecurity is driving the growth of cyber insurance market.
Rapidly increasing cybercrime events and risk to cybersecurity led to rising adoption of cyber insurance by various industry verticals such as BFSI, IT & telecommunication, healthcare, retail, energy & utilizes, transportation, and manufacturing. According to Checkpoint, ransomware attacks in 2020 have been increased by 93% which affect security system of companies. Thus, cyberattack activities are boosting the growth of cyber insurance market.
COVID-19 Impact
The COVID-19 pandemic encourages both public and private organizations to implement new practices of remote working. The WFH trends and internet penetration across the globe led to rapid digitalization, which drive the need of protective measures against cybercrime events and cybersecurity. Thus, cyber insurance solution enables the organizations to ensure the security from the threat of cybercrime events.
Restraint:
High cost of cybersecurity insurance is hampering the growth of cyber insurance market.
High cost of cybersecurity insurance is hampering the growth of cyber insurance market.
Cyber insurance provide protection from cybercrime events led to increasing demand for cyber insurance policies. However high cost of cyber insurance and complex coverage terms are hindering the growth of cyber insurance market. Moreover, cyber insurance companies are applying coverage cost to cover additional services such as negotiation with hackers and data recovery assistance for ransomware attack. Thus, rising prices of cybersecurity insurance is limiting the growth of cyber insurance market.
Cyber Insurance Market Segmentation:
By Insurance type
The Insurance type segment is bifurcated into Standalone and Tailored.
Standalone type of insurance provide protection against lawsuits filed for breaches of security to protect sensitive information. Additionally, standalone type of insurance is associated with risk assessments, such as data destruction, business interruption, and funds transfer loss. Thus, standalone type of insurance hold major share of cyber insurance market.
Tailored insurance type segment witness rapid growth of cyber insurance market due to availability of customized cyber insurance services. Tailored insurance is rapidly adopted due to its property of risk coverage among various industry verticals such as BFSI, healthcare, IT, and telecommunication.
By Coverage type
The coverage type segment is divided into First party and Liability coverage.
First party coverage demonstrates major market share of cyber insurance market. First party coverage is associated with the cases where victims are directly involved in the event. It provides financial assessment for industry verticals to protect from cyberattacks and data breaches. Thus, increasing cyber threat activities fuel the demand of first party coverage for cyber insurance market.
Liability or third-party coverage anticipate rapid growth of cyber insurance market due to its rising demand for risk management programs. Liability coverage offers several benefits such as data breaches coverage and business interruption loss coverage.
By Organization size
The organization size segment is bifurcated into Large enterprise, and Small & Medium enterprise.
Large enterprise holds largest revenue share for cyber insurance market owing to rising adoption of cyber insurance services. Cybercrime events have extensively increased in large enterprises, resulting rising investments in risk management and rapid adoption of cybersecurity insurance services led to boost the growth of cyber insurance market in large enterprise.
Small & medium enterprise witness rapid growth of cyber insurance market due to rising threat of cybercrime events and increasing concern related to cybersecurity.
By End Use
The end-user segment is categorized into BFSI, IT & Telecom, Healthcare, Retail, and Others.
BFSI holds major share of cyber insurance market due to rising inclination towards digitalization and internet banking leading to increasing cybercrime events. The vast data generation in financial sector is subjected to easy target for the hackers. Thus, risk of cyberattacks is boosting the growth of cyber insurance market.
Healthcare segment anticipate fastest growth of cyber insurance market owing to rapid adoption of insurance policies in healthcare sector to protect patient\'s personal data. For instance, between 2009 to 2022, 5,150 data breaches involving 500 records have been reported.
By Region
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
North America demonstrates major market share of cyber insurance due high risk of data privacy and increasing cyberattack events. Additionally, existence of dominant service providers fuel the growth of cyber insurance market in the region.
Asia Pacific region witness fastest growth of cyber insurance market due to increasing adoption digitalization and cybersecurity insurance service to protect the organizations from cybercrimes. The increasing event of ransom attack is boosting the growth of cyber insurance market. For instance, according to Microsoft Research, in 2020, 7% of total ransom attack incidents was demonstrate in Asia Pacific region, with Revil and Maze being most common ransomware behind 50% of successful attacks.
Cyber Insurance Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Cyber Insurance Market. Key players in the market include-
• American International Group Inc.
• Tata Consultancy Services Limited
• Beazley Group PLC
• Guy Carpenter and Company LLC.
• At-Bay Inc.
• Chubb Limited
• Lloyds Bank PLC
• AXA SA
• Cisco Systems Inc.
• Apple Inc.
• Zurich Insurance Group
• AON Plc
• Axis capital
• Lockton
• Zeguro
• CYE
• Fairfax financial
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| Multi user | : $5460 |
| Corporate user | : $7460 |
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