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Cyber Insurance Market Trends

ID: MRFR//7163-CR | 87 Pages | Author: Aarti Dhapte| May 2020

Cyber Insurance Market Overview

The Cyber Insurance Market size is projected to grow from USD 13.13 Billion in 2024 to USD 68.35 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 22.90% during the forecast period (2024 - 2032). Additionally, the market size for cyber insurance was valued at USD 10.37 Billion in 2023.

The growing prevalence of cyber threats due to the significant online presence of a large global population is driving the demand for cyber insurance. This factor is a key market driver, contributing to the industry's growth.

Figure 1: Cyber Insurance Market Size, 2022-2032 (USD Billion)

Cyber Insurance Market Overview

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Cyber Insurance Market Trends

Increasing Cyber Risks Triggering Market Demand is Driving the market growth

The increasing number of cyber threats, fueled by the online presence of a significant global population, is driving the demand for cyber insurance. Policymakers and regulatory bodies are taking initiatives to strengthen defenses, further boosting market demand. Data privacy laws like HIPAA and GDPR contribute to the demand as well. The proactive measures firms take to mitigate losses indicate the market's future growth potential. This factor drives the market CAGR.

Additionally, the forecast period anticipates a significant surge in demand for cyber insurance services, primarily driven by the adoption of blockchain technology and risk analytics software. Underwriters utilize risk analytics to evaluate premium values for digital assets and solutions. The speed and efficiency of transactions and settlements, enabled by blockchain's decentralized nature, contribute to the growing demand. The insurers' need for first-party Coverage due to an increased online presence further fuels the global cyber insurance market. Thus, driving the Cyber Insurance market revenue.

Cyber Insurance Market Segment Insights

Cyber Insurance Component Insights

Based on components, the global Cyber Insurance market segmentation includes Solutions, Services. The dominance of the services segment in the market is attributed to its vital role in assessing and managing cyber risks for organizations. Insurance providers offer comprehensive risk assessment services that assist businesses in identifying vulnerabilities, evaluating threats, and implementing effective risk mitigation strategies. This proactive approach to risk management is highly valued by organizations seeking robust protection against cyber threats, ensuring optimal data protection.

Cyber Insurance Type Insights

The global Cyber Insurance market segmentation, based on Type, includes First Party Coverage, Third-Party Coverage. The third-party coverage segment dominated the market because of the regulatory compliance requirements imposed by various industry regulations and privacy laws. Regulatory frameworks like GDPR and CCPA mandate organizations to have insurance coverage for mitigating financial losses arising from data breaches or non-compliance. As a result, organizations are increasingly seeking third-party Coverage to fulfill their compliance obligations.


Cyber Insurance Market

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Cyber Insurance Size Insights

The global Cyber Insurance market segmentation, based on size, includes large enterprises and SMEs. The large enterprise segment dominated the market because it could allocate a larger budget for cyber security initiatives and insurance premiums. The financial capacity of large enterprises allows them to invest in robust cyber security measures and comprehensive insurance coverage to protect their operations, reputation, and customer trust. This willingness to invest in cyber insurance drives the dominance of the large enterprise segment.

Cyber Insurance Vertical Insights

Based on vertical, the global Cyber Insurance market segmentation includes Banking Financial Services and Insurance (BFSI), IT & Telecom, Retail, and Healthcare. The banking financial services and insurance (BFSI) segment dominated the market; Cyber insurance is crucial for ensuring the security and privacy of customer data. Compliance with regulations like PCI DSS and financial data protection laws is mandatory, especially for organizations in the BFSI sector. By obtaining cyber insurance, these organizations meet compliance requirements and gain financial protection against data breaches and regulatory penalties.

Cyber Insurance Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American cyber insurance market area will dominate this market due to the presence of large multinational companies across several industries. The U.S. is accountable for maximum revenue in the Region owing to the need for monitoring and investigating cyber threats.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Cyber Insurance Market

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe Cyber Insurance market accounts for the second-largest market share. The awareness among leading companies and the support of European Union policymakers have contributed to the significance of cyber insurance, prompted by numerous data breaches. The U.K. is expected to hold a substantial share of the regional market due to the widespread integration of digital technologies in daily operations and increased cyber attacks observed in 2020. 

Further, the German Cyber Insurance market held the largest market share, and the UK Cyber Insurance market was the fastest growing market in the European RegionThe Asia-Pacific Cyber Insurance Market is expected to grow fastest from 2023 to 2032. The increasing prevalence of cyber threats, due to a significant portion of the global population spending extensive time online, is fueling the demand for cyber insurance. Moreover, the China’s Cyber Insurance market held the largest market share, and the Indian Cyber Insurance market was the fastest-growing market in the Asia-Pacific region.

Cyber Insurance Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Cyber Insurance market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Cyber Insurance industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Cyber Insurance industry to benefit clients and increase the market sector. In recent years, the Cyber insurance industry has offered some of the most significant advantages to medicine. Major Cyber Insurance market players include 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. others, are attempting to increase market demand by investing in research and development operations.

Beazley PLC is a British company that serves as the parent organization for specialized insurance businesses operating in Europe, the US, and Asia. With its presence in the Lloyd's market, Beazley manages six syndicates. The company is incorporated in the UK and is publicly listed on the London Stock Exchange, where it is included in the FTSE 100 Index. Beazley Group entered into a collaboration with Cytora to streamline the insurance process for clients and brokers, drive profitable growth, and automate risk assessment. By leveraging the Cytora platform, Beazley aims to modernize its underwriting operations on a global scale, enhancing straight-through processing capabilities and reducing reliance on manual processes.

Spring Insure is a company that strives to find the perfect balance between effectively covering complex risks and taking responsibility for the capacity under its control. They focus on establishing and nurturing long-term relationships with their clients, brokers, and insurer partners. Additionally, Spring Insure is dedicated to equipping its employees with the necessary tools for success and ensuring their involvement in the collective achievements of the company. Recently, Spring Insure introduced a specialized commercial cyber offering tailored specifically for small and medium-sized enterprises (SMEs). This cyber offering provides comprehensive protection against losses resulting from cyber-attacks and grants SMEs access to Beazley Cyber services, including risk management and pre-breach services.

Key Companies in the Cyber Insurance Market Include

  • Tata Consultancy Services Limited (India)

  • Guy Carpenter and Company LLC. (U.S.)

  • At-Bay Inc. (U.S.)

  • Lloyds Bank PLC (U.K.)

  • Cisco Systems Inc. (U.S.)

  • AXA SA (France)

  • Chubb Limited (Switzerland)

  • Apple Inc. (U.S.)

  • Zurich Insurance Group (Switzerland)

  • Beazley Group PLC (U.K.)

  • Lockton Companies (U.S.)

  • American International Group Inc. (U.S.)

Cyber Insurance Industry Developments

Sept 2020: Atlantech Online announced they had lit Anthem Row with fiber. The tenants on 700 K Street, NW, and 800 K Street can now enjoy high-speed Internet bandwidth at affordable prices. Atlantech's Hosted PBX Service service can be utilized by tenants adding to the company's legacy.

Oct 2020: Vonage has joined forces with Hacktoberfest to promote and recognize contributions to the Open Source community. As part of their collaboration, Vonage will provide access to their libraries, code snippets, and demos on GitHub, supporting and facilitating participation in the event.

Cyber Insurance Market Segmentation

Cyber Insurance Component Outlook

  • Solution

  • Services

Cyber Insurance Type Outlook

  • First Party Coverage

  • Third-Party Coverage

Cyber Insurance Size Outlook

  • Large Enterprises

  • SMEs

Cyber Insurance Vertical Outlook

  • Banking Financial Services and Insurance (BFSI)

  • IT & Telecom

  • Retail

  • Healthcare

Cyber Insurance Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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