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, Aerospace and Defense, Automotive & Transportation, Media & Entertainment, Education, Energy & Utilities, Others) - Forecast till 2027

Market Overview

Global Cyber Insurance Market size is deemed to reach USD 24,185.3 Million by 2025, according to estimations by Market Research Future (MRFR) in its latest report. It is anticipated to exhibit 28.61% CAGR over the forecast period. 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.

COVID-19 Analysis

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.

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 market in the coming years.

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 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 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.

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.

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

• 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.)

Recent Developments

• At-Bay, a U.S. cyberinsurance 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.

Report 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 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

Frequently Asked Questions (FAQ) :

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