Cyber Insurance Market

Preliminary research of Fairfield Market Research indicates a promising growth outlook for global cyber insurance market during the course of next few years.

Increasing Need for Cyber Threat Mitigation to Bode Well for the Cyber Insurance Market

Data breaches and cyber attacks have been on the rise since past few decades globally. For instance, according to Federal Trade Commission (FTC), in 2020, 4.8 million identity thefts and fraud reports were registered, which represents a 45% increase than the previous year. In addition, average count of data breaches and cyber attacks in 2021 grew by 15.1% as compared to 2020. This factor has boosted the need for cyber security in turn aiding the growth of the cyber insurance market. Furthermore, sectors such as healthcare, BFSI and retail among others are prime targets for hackers owing to large volume of customer data. These cyber threats impose several implications on economic prosperity, government security as well as public safety. To mitigate these issues, government authorities have formed cybersecurity commissions with task forces in their respective regions. Additionally, rising awareness regarding risks associated with BI (business interruption) has fuelled the need for cyber insurance products since recent years. Enterprises are thus turning towards ensuring safety of their businesses by opting for cyber insurance. This factor remains instrumental in driving the growth of the market on the global front.

COVID 19 Pandemic Era Presented Potential Growth Avenues for Cyber Insurance Market

Since the beginning of the COVID 19 pandemic, digitalization has acquired the centre-stage gaining high traction then before. With remote working and other hybrid models in practice, the need for a safe and robust cybersecurity network has increased significantly. As the “work from home” trend gained significance, the use of VPN (Virtual Private Network) servers among enterprises increased. This crisis has been capitalized by cyber criminals across the globe resulting in a rise in cyber threats. In wake of this situation, big, medium, and small enterprises are using cyber insurance policies to reduce the burden of cyber attacks. This factor has propelled the need for insurance, in turn bolstering growth of the market.

Standalone Insurance to Witness an Upswing in Cyber Insurance Market with Growing Demand from Large Enterprises, and SMEs

Standalone insurance has been gaining immense popularity among SMEs and large enterprises on the back of comprehensive cover policy it offers. Standalone insurance provides safety to the organization from lawsuits. In addition, standalone cyber insurance offers maximum coverage against business interruption, fund transfer loss and data destruction or loss among others. That said, rising adoption of standalone insurance is expected to largely contribute towards value growth of the cyber insurance market worldwide.

North America to Gain More Space in Cyber Insurance Market, Asian Markets Reflect High Growth Potential

Geographically, North America is projected to account for a significant revenue share in the cyber insurance market. Rising cyber attacks in the region and high risks associated with data losses continue to influence the growth of the market in developed nations in North America. Countries such as United States and Canada are expected to drive the value growth of the cyber insurance market. In addition, stringent government regulations and strict policies regarding cybersecurity have given an impetus to the need for cyber insurance. Other factors such as strong economic growth, strategic investments, research and development activities and partnerships are also contributing towards growth of the market in the region.

On the other side of the spectrum, the cyber insurance market in Asia Pacific is also gaining momentum. Emerging economies such as India and China are showing signs of growth in this space on the back of rising proliferation and acceptance of technology. Moreover, since the onset of COVID 19 pandemic, cyber insurance market has become volatile and extremely dynamic. The market has been witnessing immense growth since past few years in the region. For instance, as per the analysis carried out by Data Security Council of India, the cyber insurance market grew by 40% since 2020 and is projected to expand at the same pace in the forthcoming period. In broad sense, the market in Asia Pacific has been showcasing immense growth potential and companies can expect a plethora of opportunities from the region in the coming years.

Cyber Insurance Market: Competitive Scenario

New launches, collaborations, and alliances among key players in the cyber insurance market have been witnessed. For instance, in 2021, CNA introduced the CNA CyberPrep. This upbeat program is intended to support organizations take a thorough approach towards cyber threats thus helping CNA policy holders to identify, respond and mitigate threats. Likewise in September 2021, a collaboration between USAA Insurance Agency and Chubb was signed to provide a personalized protection from cyber threats to USAA members and families. This standalone policy covers expenditures associated with personal cyber event along with fraudulent wire transfers, ransomware extortion, cyber bullying, and identity theft.

Same year, Zurich Insurance Group and Insurtech collaborated to offer fully integrated cyber security solutions and insurance services for consumers, families as well as SMEs. In October 2022, a new incident response team was introduced by AXA XL in America. This cyber incident response team supports clients before a cyber attack, during the attack and even after the incident. Same year in May, Microsoft launched Defender to provide support to the security system of small and medium scale enterprises to mitigate cyber risks. This solution includes EDR (Endpoint Detection and Response) that offers an effective endpoint security to the enterprise.

Key Players

A few of the major players in global cyber insurance market include Allianz, BitSight, AIG, Cyber Indemnity Solutions, Cybernance, Cronus Cyber Technologies, Coalition, AXIS Capital, AXA XL, American International Group Inc., Travelers Indemnity Company, Chubb, Beazley Group, CNA Financial Corporation, Zurich Insurance, and The Hanover Insurance Inc.

The Global Cyber Insurance Market Is Segmented As Below:

By Component

• Solution
• Services

By Insurance Coverage

• Data Breach
• Data Loss
• Ransomware Attacks
• Others
• Cyber Liability

By Insurance Type

• Packaged
• Standalone

By Organization Type

• Large Enterprises
• SMEs

By End User

• Healthcare
• IT and Telecom
• BFSI
• Retail
• Manufacturing
• Others

By Region

• North America

• U.S.
• Canada
• Mexico

• Europe

• UK
• France
• Germany
• Russia
• Rest of Europe

• Asia Pacific

• Japan
• South Korea
• India
• China
• Rest of Asia-Pacific

• LAMEA

• Latin America
• Middle East
• Africa

Key Elements Included In The Study: Global Cyber Insurance Market

• Cyber Insurance Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2021
• Market Value at Regional and Country Level, 2022 - 2029
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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Disclaimer:

• The segmentation/company profiles/countries depicted above may vary in the actual report.