Cyber Insurance Market Research Report - Global Forecast till 2030

Cyber Insurance Market Research Report: By Component (Solution, Services), Coverage Type (First Party Coverage (Theft and Fraud, Computer Program and Electronic Restoration, Extortion, Forensic Investigation, Business Interruption), Third-Party Coverage (Crisis Management, Credit Monitoring, Regulatory Response, Regulatory Response, Privacy, and Security Liability, Network Security Liability, Media and Communication Liability)), Organization Size (Large Enterprises, SMEs), Vertical (BFSI, IT & Telecom, Retail, Healthcare, Manufacturing, Aer

ID: MRFR/ICT/7163-CR | May 2020 | Region: Global | 87 Pages         

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Cyber Insurance Market

Cyber Insurance Market size is deemed to reach USD 64.49 Billion by 2030
Market Size
Dominating Region
Forecast Period
$64.49 Billion
North America
By Component
By Type
By Size
By Vertical
  • Solution
  • Services
  • First Party Coverage
  • Third-Party Coverage
  • Large Enterprises
  • SMEs
  • BFSI
  • IT & Telecom
  • Retail
  • Healthcare
Companies Profiled
Key Players
Tata Consultancy Services Limited (India)
Guy Carpenter and Company LLC. (U.S.)
At-Bay Inc. (U.S.)
Lloyds Bank PLC (U.K.)
AXA SA (France)
Cisco Systems Inc. (U.S.)
Chubb Limited (Switzerland)
Apple Inc. (U.S.)
American International Group Inc. (U.S.)
Zurich Insurance Group (Switzerland)
Beazley Group PLC (U.K.)
Lockton Companies (U.S.)
AON Plc (U.K.)
Market Driving Forces
The large number of cyber threats owing to a sizeable portion of the global population spending their time online can drive the demand for cyber insurance
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Cyber Insurance Market Overview

Cyber Insurance Market Size to Hit USD 64.49 Billion with 26.57% CAGR by 2030, As per the latest report of Market Research Future (MRFR). Cyber insurance is a novel insurance offered in recent years owing to the proliferation of the Internet and risks posed by online surfing. It allows enterprises to take precautionary monetary hedges against ransomware, malware, and other attacks for compromising integrity of businesses. The COVID-19 pandemic and its deadly effects on the industry has been explored in the report.

  • July 2022- SBI General Insurance has introduced the Cyber VaultEdge insurance plan, a complete cyber insurance cover for individuals offering protection against financial losses arising from cyber-attacks and risks, according to the company's official statement. The pandemic has caused a substantial rise in the implementation of digital infrastructure across services. Individuals were concentrating on adopting work from home model (WFH) and several digital functioning methods for most services, including payments. Though this is a welcome development, an increase of pervasive digitization and internet penetration, terms cyber-attacks are on the increase across the globe. As per CERT-In, cyber security incidents spurred to ₹14.02 lakh in 2021 from ₹2.08 lakh in 2018; at the same time, the losses because of these crimes, internet banking fraud, credit card, and ATM/debit card were assessed at Rs. 63.4 crores in 2020-21, as per data published by private and public banks.

COVID-19 Analysis Of Cyber Insurance

The COVID-19 pandemic has forced customers to stay indoors and work from the confines of their homes. This has raised the risk of cyber-attacks and prompted questions on cyber insurance during the pandemic. Ransomware attacks, data breaches, and interruptions of businesses can drive the demand for cyber insurance even after the passing of the pandemic. The belief in cyber risk can also push the market demand and inclusion of incident response management in latest policies can navigate future trends in the market. The issues of silent cyber and the expansion of coverage areas for workers compensation, specialty lines, and personal lines are expected to be discussed in future cyber insurance policies.

  • October 2022- Medibank asserts cyber insurance would not have assisted it in dodging a massive financial hit from the company's primary data breach. Australia's largest private health insurer is looking at a USD 35 million pre-tax hit to its earnings for the first half of the financial year before any fines or extra compensation it might have to pay. The organization's share market worth plunged around USD1.75 billion on Wednesday, its first day of trading, since disclosing its customer database was hacked. The share drop occurred on the same day Medibank revealed the hackers had contact details for all four million of its customers and an unspecified number of previous customers. Mark Rogers, the chief financial officer, stated that the organization had not taken out cyber insurance because it was too expensive. He further added that the costs escalated substantially in the last few years. How much cover can you get in terms of the total amount of exposure and the actual ability to make a claim?

Cyber Insurance Market Dynamics

  • Drivers

Increasing Cyber Risks Triggering Market Demand

The large number of cyber threats owing to a sizeable portion of the global population spending their time online can drive the demand for cyber insurance. Initiatives taken by policy makers and regulatory bodies to strengthen defenses can spur market demand at a significant pace. Rise of data privacy laws such as the Health Insurance Portability and Accountability Act (HIPAA) and EUs General Data Protection Regulation (GDPR) can facilitate the demand further. Proactive measures taken by firms to avoid losses is a sign of the growing potential of the market in the coming years.

  • Opportunities

High Demand for Cyber Insurance Services

The demand for cyber insurance services is expected to soar during the forecast period owing to adoption of blockchain and risk analytics software. Risk analytics are used by underwriters for assessing the valuation of premiums on digital assets and solutions. The faster speed of transactions and settlements without any middleman can facilitate the demand. In addition, the demand for first party coverage by insurers owing to larger presence online can drive the global cyber insurance market.

  • Restraints

High Costs of Services

The high costs of cyber insurance and lack of proper coverage for compromised systems can deter leading players across industries from their procurement. Rising costs of premiums as well as inclusion of charges for data recovery and negotiation with hackers can restrain the cyber insurance market growth.

  • Challenges

Lack of Cyber Security Experts

The lack of cyber security experts for monitoring and preventing online threats can hamper market growth. Training in cyber intelligence and in-house courses to enlighten employees can keep the growing threats at bay.

  • Cumulative Growth Analysis

The global cyber insurance market is proposed to grow at a terrific rate owing to increased use of IoT and IIoT. Endpoint security solutions and rollout of new services for prevention of cyber threats can facilitate the market. Companies of all sizes can procure cyber insurance owing to the protection of intellectual property rights and rise of cryptocurrencies. Moreover, formulation of new guidelines for protecting company property and reducing inherent risks can form a large part of the cybersecurity insurance market in the coming years.

Market Segment Overview

  • By Component

Solutions Segment to Record Huge Growth in Global Market

The solutions segment is expected to record a CAGR of 18% during the forecast period. Installation of cybersecurity software and readiness of large and small organization against online threats can drive the segment demand till 2025.

  • By Coverage Type

First-party Coverage to Lead in Cyber Insurance Market

The first party coverage segment is expected to witness increased demand in the global cyber insurance market owing to new cases of cyber extortion and fund transfer fraud. Reliance on the internet for completing transactions and communication with employers can create huge risks and drive the segment demand for protection against cyber threats.

  • By Organization Size

Large Enterprises to Lead in Cyber Insurance Market Demand

Large enterprises accounted for 77% share in 2017. It is projected to lead in the global cyber insurance market owing to investments in cyber security for protecting their assets.  Stringent regulations can induce the demand for cyber security solutions as well as their dependence on internet of things and cloud.

  • By Vertical

IT & Telecom to Generate Maximum Revenue till 2025

The IT & telecom vertical is expected to register 33.24% CAGR over the forecast period owing to efforts by in-house teams to strengthen their defenses against cyber attacks. The reliance on connectivity technologies and servers for adhering to client demands can drive the market demand. High spending rate by multinational companies and the shift to remote work is likely to witness huge sales of cybersecurity software.

  • October 2022- Upcover has introduced cyber security insurance for small businesses in light of the cyber-attack on Optus and the forthcoming Cyber Security Awareness Month in October. The company focuses on servicing Australian small and medium enterprises (SMEs) with the latest Cyber and Privacy Liability Insurance launch.

Cyber Insurance Industry Regional Analysis

North America Pegged to be Leading Region in Cyber Insurance Market

North America is expected to lead in the global market owing to presence of large multinational companies across several industries. The U.S. is accountable for maximum revenue in the region owing to need for monitoring and investigating of cyber threats.

Europe to Assume Second Position

Europe is likely to lead in the global cyber insurance market owing to awareness of leading companies and support of European Union policy makers in light of various data breaches. The U.K. is deemed to capture a large share of the regional market owing to integration of digital technologies in daily tasks and a rise in cyber attacks in 2020. Setup of guidelines for cyber security and collaboration between private and public players for assuring cyber insurance can provide an economic stimulus to the region and lead to a surge in ease of business ratings.

  • October 2022- Medibank, an Australian insurance company, has announced in the latest company statement after being communicated by a nasty party alleging to have customer data and wanting a ransom for its deletion. The primary cyber security confrontation happened on October 13, when the company identified some "unusual activity" on its internal systems.

Cyber Insurance Market Competitive Landscape

Global Cyber Insurance Market is highly concentrated owing to large number of looming cyber threats and large number of customers working from the confines of their homes during the COVID-19 pandemic. Cyber risks that can potentially afflict companies by exposing their vulnerabilities have led to insurers moving from traditional models to new ones for measuring intangible assets. Prevention of malware and changing guidelines adopted by companies of all sizes can change the landscape of the market.

List of Key Companies Covered in this Report

Recent Developments

  • At-Bay, a U.S. cyber insurance firm, has raised close to USD 34 million in a Series C seeding round. The company is expected to cater to the demand of various large companies in the region amid data privacy laws and international regulatory laws.

Market Overview

Global Cyber Insurance Market report by Market Research Future (MRFR) covers developments, trends, drivers, and challenges to be faced by the industry amid the changing market and adoption of new-age devices. It studies seed funding rounds, acquisitions, and the impact of the COVID-19 pandemic for estimating the market size and other projections for the forecast period. It is segmented in the following manner:

By Component

  • Solution

  • Services

By Coverage Type

  • First-party Coverage

    • Computer Program and Electronic Restoration

    • Forensic Investigation

    • Theft and Fraud

    • Extortion

    • Business Interruption

    • Others

  • Third-party Coverage

    • Communication Liability

    • Crisis Management

    • Credit Monitoring

    • Regulatory Response

    • Privacy and Security Liability

    • Network Security Liability

    • Media and Communication Liability

    • Others

By Organization Size

  • Large Enterprises

  • SMEs

By Vertical

  • Energy & Utilities

  • Media & Entertainment

  • Automotive & Transportation

  • Aerospace & Defense

  • IT & Telecom

  • Education

  • Healthcare

  • Retail

  • BFSI

Report Scope:

Report Attribute/Metric Details
  Market Size   USD 64.49 Billion By 2030
  CAGR   26.57% From 2020 to 2030
  Base Year   2019
  Forecast Period   2020 to 2030
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Component, Size
  Geographies Covered   North America, Europe, Asia-Pacific
  Key Vendors   Tata Consultancy Services Limited (India) Guy Carpenter and Company LLC. (U.S.) At-Bay Inc. (U.S.) Lloyds Bank PLC (U.K.) AXA SA (France) Cisco Systems Inc. (U.S.) Chubb Limited (Switzerland) Apple Inc. (U.S.) American International Group Inc. (U.S.) Zurich Insurance Group (Switzerland) Beazley Group PLC (U.K.) Lockton Companies (U.S.) AON Plc (U.K.)
  Key Market Opportunities   High Demand for Cyber Insurance Services
  Key Market Drivers   Increasing Cyber Risks Triggering Market Demand

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Frequently Asked Questions (FAQ) :

The key market players of the global cyber insurance market are observing major opportunities owing to the increasing adoption of modern technologies such as cloud technologies, artificial intelligence, machine learning, Internet of Things (IoT), and big data, due to the increased susceptibility of data threats.

The regional analysis of the global cyber insurance market has been conducted in five major regions, namely, North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa.

The segmentation of the global cyber insurance market is done on the basis of type, component, organization size, verticals, and region.

Cyber Insurance Market is anticipated to expand at a CAGR 26.57% and will reach USD 64.49 Billion by 2030.

At-Bay, a U.S. cyber insurance firm, has raised near USD 34 million in a Series C seeding round.

North America is supposed to lead in the worldwide market attributable to presence of huge global organizations across several industries