Cyber Insurance Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the cyber insurance market was valued at USD 13.2 billion in 2022, and a CAGR of 25.3% is expected during the forecast period. It includes the coverage that provides protection against the costs associated with data breaches. It provides protection against credit monitoring, business interruption, and reputation management. This market is steadily growing due to the increasing frequency and severity of cyberattacks. Since businesses have become more dependent on digital infrastructure, the need for protection against potential cyber risks has increased.

Market offers a range of policies covering various aspects of cyber security, including data breaches, ransomware attacks, and business interruptions. As businesses increasingly rely on technologies, the threat of cyberattacks has grown rapidly. Increasing awareness of cyber risks among businesses and boards of directors is leading to greater adoption of cyber insurance.

Growth Drivers

The proliferation of cyber threats such as ransomware, data breaches, and social engineering attacks has increased awareness among businesses about the need for cyber security. With businesses relying more on digital platforms, the need for data integrity, authentication, and confidentiality has increased. The potential impact of cyber incidents on operations and finances has heightened, driving the demand for cyber insurance. Businesses are increasingly interconnected through the supply chain, making them vulnerable to cyberattacks targeting third-party vendors.

Increasing demand is needed to cover the losses arising from cyber incidents affecting the supply chain partners. Businesses are adopting a more proactive approach to risk management, which includes investing in cyber insurance as part of their overall risk mitigation strategy. Insurers are expanding their cyber insurance offerings and enhancing coverage to meet the evolving needs of businesses. This competitive landscape is driving innovation in the market significantly. The financial repercussions of cyber incidents, including remediation costs, legal fees, and loss of revenue, are substantial.

Cyber insurance offers a safety net to mitigate these financial losses. Stringent data protection regulations like GDPR and CCPA compel businesses to secure sensitive information. Cyber insurance helps them comply with these regulations by providing financial protection in case of data breaches. Increasing awareness among people about cyber security in European countries is driving significant growth in the market. Cyber cells have been established in recent years to overcome the problem of cyber threats.

Segmentation

Company Size

·         Small Businesses

·         Mid-Sized Enterprises

·         Large Corporations

Industry Verticals

·         Healthcare

·         Retail

·         Finance

·         Manufacturing

Additional Services

·         Risk Assessments

·         Cyber Security Trainings

·         Incident Response Support

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Cyber Insurance Market Company Size Segmentation

On the basis of company size, the cyber insurance market is segmented into small businesses, mid-sized enterprises, and large corporations. Small businesses or organizations are the leading segment, followed by mid-sized segments in the cyber insurance market. They often lack robust cyber security infrastructure, which is a significant growth driver in the cyber insurance market.

Cyber insurance is recognized as a means of cyber security. However, large corporations also play a crucial role in the cyber insurance market. The increasing demand for cyber insurance in all types of organizations is driving the cyber insurance market. Medium-sized enterprises are also contributing significantly to the growth of the market.

Cyber Insurance Market Industry Vertical Segmentation

The cyber insurance market by industry vertical is segmented into healthcare, retail, finance, and manufacturing. The finance sector is the leading segment in the market and is expected to dominate the market during the forecast period. Increasing demand from financial institutions to handle large volumes of data is driving growth in the market significantly. As a result, they invest significantly in cyber security measures and security to protect against financial losses and regulatory fines.

However, healthcare is also a leading segment in the cyber insurance market due to increasing digitization of patient records and growing threats of ransomware targeting healthcare providers. Retail follows closely behind, as the industry handles a large volume of customer payment data, making it a target for cybercriminals seeking to steal financial information. The manufacturing segment is also experiencing moderate growth due to the increasing demand from the sector to handle financial or personal data significantly. Cybersecurity has become the biggest issue for worldwide organizations, and the increasing digitalization of businesses is driving growth in the market.

Cyber Insurance Market Additional Services Segmentation

On the basis of the additional services, the cyber insurance market is segmented into risk assessments, cyber security trainings, and incident response support. Risk assessment is the leading segment in the market and is expected to dominate the market during the forecast period. It helps insurers understand and quantify the risk associated with potential policyholders.

There is an increasing demand for cyber-security training to mitigate risks, as educated employees are the first line of defense against cyberattacks. A comprehensive cyber policy includes all three elements to provide holistic coverage and support for policy holders. Cyber insurance has become the need of the hour for all kinds of organizations. Increasing growth in the cyber insurance market is driving demand for cyber insurance.

Regional Outlook

On the basis of the regions, the cyber insurance market is segmented into 5 regions: Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. North America is the leading segment in the cyber insurance market due to the fact that people over there are highly aware of the risks posed by cyber threats due to the region’s advanced digital infrastructure.

Since the United States has some of the most stringent data protection regulations and various state breach notification laws, North America is home to a vast number of businesses across various industries, ranging from small and medium-sized enterprises to large multinational corporations. The increasing number of cyberattacks is the main cause behind cyber insurance and financial protection through cyber insurance policies. The insurance industry in North America is well-developed and has a vast history of providing various types of insurance coverage. North American businesses have a high level of acceptance and understanding of insurance.

Key Players

·         Lockton Companies

·         Zurich Lloyd’s of London Ltd.

·         AXA SA

·         Chubb

·         Berkshire Hathaway

·         American International Group

·         Munich Reinsurance Company

·         AON Plc

·         Allianz

·         Other Players