Global Cyber Insurance Market Size, Share, Growth Analysis, By End user, By Insurance type, By Component, By Coverage type, By Enterprise size - Industry Forecast 2023-2030

Cyber Insurance Market size was valued at USD 10.33 billion in 2021 and is poised to grow from USD 12.83 billion in 2022 to USD 79.75 billion by 2030, growing at a CAGR of 25.7% in the forecast period (2023-2030).

Cyber insurance is gaining popularity as a vital financial safeguard for individuals and businesses against cyber-attacks like identity theft, phishing, email spoofing, and IT theft loss. It provides various benefits, including coverage for data breaches, reimbursement for business losses, defense against cyber extortion, and forensic investigative support. In response to the escalating cyber threats, organizations worldwide are increasingly incorporating cyber insurance as part of their comprehensive security measures to mitigate risks. Data breaches can lead to significant financial losses, legal penalties, and reputational damage for businesses.

In recent times, cyber-attacks have surged dramatically, now ranking as the top risk to businesses in seven out of eight surveyed countries, surpassing concerns about economic downturns and skill shortages even before the pandemic. Cyber insurance covers multiple advantages, such as conducting audits to ensure compliance with new standards, meeting post-breach notification requirements, and managing other compliance-related costs and liability expenses.

However, the rise in cyber-attacks has led to increased premiums and stricter coverage limitations, prompting insurers to reassess their exposure to potential losses. Additionally, the lack of standardization within the industry is negatively affecting the growth of the cyber insurance coverage sector.

Top-down and bottom-up approaches were used to estimate and validate the size of Cyber Insurance and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Cyber Insurance Market Segmental Analysis

Global cyber insurance market is segmented on the basis of component, insurance, type, coverage type, enterprise type, end user, and region. by component, the market is segmented into solution and services. by end user the market is segmented into healthcare, retail, BFSI, IT & telecom, manufacturing, and others. by insurance type, the market is segmented into standalone and tailored. by coverage type the market is segmented into first-party and liability coverage. by enterprise size the market is segmented into (SMEs and large enterprise). By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Analysis by Enterprise size

The global market is categorized into various segments based on Enterprise size, including SMEs (Small and Medium-sized Enterprises) and Large Enterprises. Among these segments, the Large Enterprises hold the largest share in the Cyber Insurance market. This is primarily because Cyber Insurance offers a broad range of benefits that cater to the needs of bigger organizations. Large Enterprises, typically comprising more than 1000 employees, heavily invest in advanced technology to enhance productivity and overall industry efficiency.

Navigating the intensely competitive and complex business environment to ensure optimal security for these enterprises is challenging. As a result, many large organizations are turning to cyber security insurance solutions as a means to achieve the desired level of security. The extensive use of various software systems by these enterprises, especially those heavily reliant on cloud services and Internet of Things applications, exposes them to significant security threats. This exposure compels them to consider investing in cyber security insurance.

Analysis by Component

The cyber insurance market is divided into two main components: solutions and services. Among them, the solution segment holds the largest market share and is projected to continue its growth, establishing a dominant position. These insurance solutions excel in assessing the extent of cyber risks and threats that companies face. The increase in cyber-attacks, concerns about privacy, and the consequences of recent global events have led to a substantial rise in data breaches. As a result, various institutions and companies are adopting these solutions to enhance their corporate cyber security measures.

Global Cyber Insurance Market Regional Insights

In 2022, North America is projected to dominate the global Cyber Insurance market share, primarily attributed to the presence and influence of key industry leaders like AXA XL U.S. and CNA Financial Corporation, leading to significant growth during this period.

On the other hand, the Asia Pacific region is expected to experience the most rapid expansion throughout the forecast period. This surge is driven by the escalating threat of Ransomware attacks and increased risks in the region. Developing countries such as India, with their significant digital transformation, have left numerous organizations susceptible to cyber exploitation. Consequently, a growing number of companies in the Asia Pacific are recognizing the necessity of Cyber Insurance and are actively seeking its acquisition.

Global Cyber Insurance Market Dynamics

Driver

Increasing Popularity of Blockchain to Bolster Market Growth

The adoption of blockchain and cryptocurrencies is growing rapidly worldwide. With the expanding user base in this market, there is a surge in crypto-related risks and security concerns. The inherent volatility of cryptocurrency platforms exposes investors to the risk of losing substantial amounts, potentially impacting the sector with significant losses. To mitigate these threats, companies operating in this industry are making substantial investments in cyber insurance.

Restraints

Premium Cost to Hinder Market Growth

The escalating need for cyber insurance across diverse industries to safeguard against cyber-crimes and threats has resulted in a surge in insurance premiums. This upward trend in premium costs is negatively impacting the cyber insurance market, leading to a slowdown. Moreover, both New York customers and policyholders in general are experiencing a decline in policy renewals and continuations due to the heightened prices.

Global Cyber Insurance Market Competitive Landscape

Anticipatedly, the global Cyber Insurance market will witness a surge in competition in the foreseeable future. This upswing is attributed to the influx of new entrants into the global arena, coupled with a substantial rise in Cyber Insurance-compatible solutions. Presently, the market is dominated by a handful of key players, but this landscape is set to evolve, with an augmented number of service providers expected to join the fray in the coming years.

Top Player's Company Profiles

American International Group, Inc.

Chubb Limited

Zurich Insurance Group AG

AXA SA

Allianz SE

Berkshire Hathaway Inc.

Munich Re Group

Travelers Companies, Inc.

Liberty Mutual Group Inc.

Beazley Plc

CNA Financial Corporation

Hiscox Ltd.

Sompo Japan Nipponkoa Insurance Inc.

XL Group Ltd.

Aon Plc

Marsh & McLennan Companies, Inc.

Willis Towers Watson Public Limited Company

Lockton Companies

Arthur J. Gallagher & Co.

Brown & Brown Inc.

Recent Developments

In October 2022, in light of the Optus cyberattacks and the upcoming October Cyber Security Awareness Month, Upcover has provided cyber security insurance for small businesses. With its most recent offering of Cyber and Privacy Liability Insurance, the company concentrates on providing services to Australian small and medium-sized businesses (SMEs). Grover announced the launch of Grover Connect, a mobile virtual network operator (MVNO) for users of tech rentals, in the US in December 2022 through a partnership with Gigs.

In August 2022, following regulatory approval, Coalition, the first Active Insurance company in the world created to mitigate digital risk before it materializes, finalized the purchase of Digital Affect Insurance Company from Munich Re Digital Partners US Holding Corporation. All 50 states have granted property and casualty insurance licenses to Digital Affect Insurance Company.

Global Cyber Insurance Key Market Trends

Expanding Digital Horizons: The advent of the metaverse and IoT is pushing the digital landscape to new frontiers, leading to a surge in the introduction of advanced 4D interface devices. As a result, the need for robust security measures to protect these devices from theft or misplacement is becoming paramount.

Rising Investment in Cybersecurity: The increasing disposable income among consumers is driving a significant boost in digital device expenditures. Consequently, there is a notable upswing in cyber spending to safeguard these valuable assets.

Global Cyber Insurance Market SkyQuest Analysis

SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

Based on the analysis provided in the global cyber insurance market report, it is projected that the industry will experience substantial expansion in the foreseeable future. This growth is attributed to the advantages it presents, including enhanced data protection and heightened security measures. The adoption of cyber insurance solutions is expected to contribute to improved user convenience. Furthermore, the market holds great promise for new entrants due to the anticipated surge in demand and rapid growth rate.