Cybersecurity Insurance Market by Insurance Risk Coverage, Offering, Compliance Requirement, Insurance Type, Organization Size, End User

Description

List of Tables

[185 Pages Report] The Cybersecurity Insurance Market size was estimated at USD 16.66 billion in 2023 and expected to reach USD 18.31 billion in 2024, at a CAGR 8.45% to reach USD 29.40 billion by 2030.

Cybersecurity insurance is a specialized and niche type of insurance policy designed to mitigate the risks associated with digital operations and online presence. Cybersecurity insurance policies may cover incident response expenses, legal fees, regulatory fines, ransom payments, and costs associated with notifying affected customers and restoring their personal data. Continuous evolutions in the digital landscape have exposed businesses to an array of cyber threats, including data breaches, network damage, and business interruption caused by malicious activities such as hacking, ransomware, and distributed denial-of-service (DDoS) attacks. Regulatory requirements concerning data privacy mandate data protection and incident reporting, further driving the demand for insurance solutions. However, delays in claim settlement, unfair settlement criteria, and fraudulent insurance practices impede the widespread adoption of cybersecurity insurance. Additionally, the lack of standardization for cybersecurity insurance policies can create complications in choosing an appropriate insurance policy for end users. However, major providers are exploring the integration of advanced technologies such as AI, ML, and big data analytics technologies to standardize, streamline, and improve the accuracy of deploying cybersecurity insurance policies. Additionally, governance bodies globally are implementing regulations that mandate the need for cybersecurity insurance.

KEY MARKET STATISTICS
Base Year [2023]	USD 16.66 billion
Estimated Year [2024]	USD 18.31 billion
Forecast Year [2030]	USD 29.40 billion
CAGR (%)	8.45%

Insurance risk coverage: Rising incidences of ransomware attack on established technological institutions

Data breach insurance intends to safeguard the organization from costs associated with breaches in information security. These costs can extend from investigative measures to understanding the extent of the damage to crisis management initiatives, legal expenses, and regulatory penalties. Data loss refers to the intentional or unintentional destruction of crucial data or information caused by people and or processes from within or outside of an organization. Data loss insurance provides a financial safety net in case of inadvertent loss of vital business data. This includes scenarios that range from malfunctioning hardware to misplaced or stolen devices. A denial-of-service (DoS) attack is a malicious attempt to overwhelm an online or digital service and render it unusable. Insurance policies covering denial of service attacks and associated downtime specifically address the risks associated with interruption of business services due to these malicious events. This coverage includes the costs related to alleviating the attack, recovery of systems, and potential public relations strategies to alleviate the impact on the company's reputation. Ransomware refers to malware designed to deny a user or institution access to files on the computer. Ransomware attack insurance covers the costs associated with responding to and recovering from such an attack. Data liability insurance covers costs associated with legal actions from third parties in the event that a company experiences financial or legal harm as a result of a data breach on its systems.

Offering: Expanding need for cybersecurity insurance services to secure business and IT operations

Services for cybersecurity insurance generally include liability coverage, which safeguards organizations against claims resulting from data breaches. This includes costs related to legal defense, customer notification, credit monitoring, fines, and penalties. Cybersecurity insurance analytics platform offers beneficial data analysis capabilities for insurers. It delivers crucial insights into the potential cybersecurity risks that could impact the insured company's operations. The platform leverages sophisticated algorithms and data-rich cloud resources to predict potential cybersecurity threats and quantify their potential financial impacts accurately. Disaster Recovery (DR) and Business Continuity (BC) are complementary but different aspects of a comprehensive cybersecurity strategy. DR focuses on restoring critical IT infrastructure and systems to regular operation following a cyberattack, while BC concentrates on ensuring that vital business operations continue with minimal disruption post-incident. Cybersecurity insurance consulting and advisory acts as an important solution for both providers and clients navigating through digital threats and opportunities. Consulting and advisory solutions can provide insights about market conditions, identify prospective client needs, and recommend robust security measures to improve overall client satisfaction and industry credibility. Security awareness training involves equipping employees or clients with the knowledge and tools to prevent data breaches and cyber attacks or even mitigate the damage.

Compliance requirement: Generation of critical patient data in various healthcare settings necessitating healthcare compliance

The data privacy compliance requirement ensures that companies are maintaining confidentiality and restricting unauthorized access to sensitive customer information. Diverse local and international laws dictate these norms, making necessary the establishment of a strong data security infrastructure, complete with procedures for regular audits, data protection, and data breach handling. The financial services and institutions are governed by a set of regulations that require insurers to keep detailed financial records, develop robust risk management strategies, deliver accurate reporting, and maintain transparent relations with stakeholders. Noncompliance can lead to financial penalties, litigation, or loss of rights to operate. General Data Protection Regulation (GDPR) is the European Union law on data protection and privacy, also applicable to the export of personal data outside the European Union(EU). GDPR compliance requires companies to always obtain consent before collecting or sharing individuals' data, along with the responsibility to protect that data from mishandling or breaches. Healthcare compliance refers primarily to the Health Insurance Portability and Accountability Act (HIPAA). Compliance includes ensuring patient data security and safeguarding patient privacy.

Organization size: Need for cybersecurity insurance coverage for large enterprises owing to advanced IT structure

Established, large enterprises possess high-value digital assets and customer data, making them attractive targets for cybercriminals. Due to the complex nature of their IT infrastructure, an effective cybersecurity insurance policy is crucial to protect against financial losses and ensure business continuity. Cybersecurity insurance plans for large enterprises usually encompass coverage for liabilities such as system repair and replacement, legal fees, public relations efforts, and penalties arising from regulatory non-compliance. On the other hand, SMEs might not have the same financial resources or extensive cybersecurity measures in place compared to larger corporations, making them susceptible to cyber threats. Cybersecurity insurance for SMEs tends to be less complex, often including coverage for data recovery, customer notification, credit monitoring, and sometimes even ransomware attacks.

Regional Insights

America's high demand for cybersecurity insurance is attributable to the high awareness of cyber risks and the presence of key insurance providers. Corporations in the US and Canada are highly adaptive to cybersecurity insurance policies due to the advanced digital infrastructure and the increased occurrence of cyber incidents. The presence of established and robust technological corporations also necessitates the provision of cybersecurity insurance. The European cybersecurity insurance market is witnessing robust growth, propelled by the General Data Protection Regulation (GDPR), which has heightened focus on data security and the consequences of privacy breaches. European nations, including the United Kingdom, Germany, and France are seeing an upsurge in demand for cyber insurance policies. The European region is also characterized by a collaborative approach between the public and the private sector to develop cyber resilience. The Asia-Pacific region presents a high-growth landscape for cybersecurity insurance. The region is experiencing the need for cybersecurity insurance due to mounting cyberattacks and an evolving regulatory environment, particularly in countries such as Japan, Australia, and Singapore. China and India are characterized by the presence of a nascent and evolving digital infrastructure, advancing technological start-up ecosystem, and small and medium-sized enterprises(SMEs) and offer significant growth opportunities.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Cybersecurity Insurance Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Cybersecurity Insurance Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Cybersecurity Insurance Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Allianz SE, American International Group, Inc., Arceo.ai by Resilience Cyber Insurance Solutions LLC, Arthur J. Gallagher & Co., AXA XL, Axis Capital Holdings Limited, BCS Insurance Company, Beazley PLC, Bitsight Technologies, Inc., Chubb Limited, Cisco Systems, Inc., CNA Financial Corporation, Coalition, Inc., Corvus Insurance, Fortinet, Inc., HDFC ERGO General Insurance Company Ltd., Hiscox Ltd., Liberty Mutual Group, The Hartford Financial Services Group, Inc., The Travelers Indemnity Company, Tokio Marine Holdings, Inc, and Zurich Insurance Group.

Market Segmentation & Coverage

This research report categorizes the Cybersecurity Insurance Market to forecast the revenues and analyze trends in each of the following sub-markets:

Insurance Risk Coverage
- Data Breach
  - Data Loss
  - Denial of Service & Down-Time
  - Ransomeware Attack

Data Liability

Offering
- Service
  - Consulting & Advisory
  - Security Awareness Training

Solution
- Cybersecurity Insurance Analytics Platform
- Cybersecurity Solution
  - Cyber Risk & Vulnerability Assessment
  - Cybersecurity Resilience

Disaster Recovery & Business Continuity

Compliance Requirement
- Data Privacy Compliance
- Financial Services Compliance
- GDPR Compliance
- Healthcare Compliance

Insurance Type
- Packaged
- Stand-alone

Organization Size
- Large Enterprises
- SMEs

End User
- Insurance Provider
  - Financial Services
  - Healthcare & Life Science
  - IT & Telecommunications
  - Retail & eCommerce
  - Travel, Tourism, & Hospitality

Technology Provider
- Government Agencies
- Insurance Companies
- Third-party Administrators

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Cybersecurity Insurance Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Cybersecurity Insurance Market?

3. What are the technology trends and regulatory frameworks in the Cybersecurity Insurance Market?

4. What is the market share of the leading vendors in the Cybersecurity Insurance Market?

5. Which modes and strategic moves are suitable for entering the Cybersecurity Insurance Market?

Product Code: MRR-0D217D5AE2E3

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Rising adoption of cloud services and digital and online platforms across the world
  - 5.1.1.2. Need to secure business and customers from cyberattacks and data breaches
- 5.1.2. Restraints
  - 5.1.2.1. Coverage exclusions and limitations of cybersecurity insurance
- 5.1.3. Opportunities
  - 5.1.3.1. Adoption of artificial intelligence and blockchain technology for risk analytics
  - 5.1.3.2. Government and private initiatives to advance cybersecurity measures
- 5.1.4. Challenges
  - 5.1.4.1. Delays in claims settlement and the prevalence of fraudulent insurance policies
5.2. Market Segmentation Analysis
- 5.2.1. Insurance risk coverage: Rising incidences of ransomware attack on established technological institutions
- 5.2.2. Offering: Expanding need for cybersecurity insurance services to secure business and IT operations
- 5.2.3. Compliance requirement: Generation of critical patient data in various healthcare settings necessitating healthcare compliance
- 5.2.4. Organization size: Need for cybersecurity insurance coverage for large enterprises owing to advanced IT structure
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Cybersecurity Insurance Market, by Insurance Risk Coverage

6.1. Introduction
6.2. Data Breach
6.3. Data Liability

7. Cybersecurity Insurance Market, by Offering

7.1. Introduction
7.2. Service
7.3. Solution

8. Cybersecurity Insurance Market, by Compliance Requirement

8.1. Introduction
8.2. Data Privacy Compliance
8.3. Financial Services Compliance
8.4. GDPR Compliance
8.5. Healthcare Compliance

9. Cybersecurity Insurance Market, by Insurance Type

9.1. Introduction
9.2. Packaged
9.3. Stand-alone

10. Cybersecurity Insurance Market, by Organization Size

10.1. Introduction
10.2. Large Enterprises
10.3. SMEs

11. Cybersecurity Insurance Market, by End User

11.1. Introduction
11.2. Insurance Provider
11.3. Technology Provider

12. Americas Cybersecurity Insurance Market

12.1. Introduction
12.2. Argentina
12.3. Brazil
12.4. Canada
12.5. Mexico
12.6. United States

13. Asia-Pacific Cybersecurity Insurance Market

13.1. Introduction
13.2. Australia
13.3. China
13.4. India
13.5. Indonesia
13.6. Japan
13.7. Malaysia
13.8. Philippines
13.9. Singapore
13.10. South Korea
13.11. Taiwan
13.12. Thailand
13.13. Vietnam

14. Europe, Middle East & Africa Cybersecurity Insurance Market

14.1. Introduction
14.2. Denmark
14.3. Egypt
14.4. Finland
14.5. France
14.6. Germany
14.7. Israel
14.8. Italy
14.9. Netherlands
14.10. Nigeria
14.11. Norway
14.12. Poland
14.13. Qatar
14.14. Russia
14.15. Saudi Arabia
14.16. South Africa
14.17. Spain
14.18. Sweden
14.19. Switzerland
14.20. Turkey
14.21. United Arab Emirates
14.22. United Kingdom

15. Competitive Landscape

15.1. Market Share Analysis, 2023
15.2. FPNV Positioning Matrix, 2023
15.3. Competitive Scenario Analysis
- 15.3.1. Onsurity Launches Cyber Insurance for India's SMEs, Expands its Suite of Products to Help Businesses Mitigate Risks
- 15.3.2. AWS Launches Cyber Insurance Program
- 15.3.3. Kaseya Launches Cybersecurity Insurance Coverage Program
15.4. Strategy Analysis & Recommendation

16. Competitive Portfolio

16.1. Key Company Profiles
16.2. Key Product Portfolio