Global Cyber Insurance Market, By Component (Solutions and Services), Insurance Type (Packaged and Standalone), Insurance Coverage (Data Breach, Cyber Liability, and Source/target), Organization Size (Large Enterprises, Small and Medium-Sized Enterprises), Application (Information and Communication Technology, Financial Services, Manufacturing, Retail, Healthcare, and Others), Coverage Type (First Party Coverage, and Third-Party Coverage) – Industry Trends and Forecast to 2031.
Cyber Insurance Market Analysis
Policy customization in the cyber insurance market refers to tailoring insurance coverage to meet the specific needs and risks of individual businesses. This application allows companies to select coverage limits and types that address their unique cyber threats, such as data breaches, ransomware attacks, or intellectual property theft. Customization also extends to including supplementary services such as proactive cybersecurity assessments, crisis management, and legal support tailored to the organization's size, industry, and regulatory requirements.
Cyber Insurance Market Size
The global cyber insurance market was valued at USD 15.05 billion in 2023 and is projected to reach USD 92.00 billion by 2031, with a CAGR of 25.40% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024-2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Component (Solutions, and Services), Insurance Type (Packaged, and Standalone), Insurance Coverage (Data Breach, Cyber Liability, and Source/target), Organization Size (Large Enterprises, Small and Medium-Sized Enterprises), Application (Information and Communication Technology, Financial Services, Manufacturing, Retail, Healthcare, and Others), Coverage Type (First Party Coverage, and Third-Party Coverage), End User (Technology Provider and Insurance Provider)
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Countries Covered
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U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America
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Market Players Covered
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American International Group, Inc. (U.S.), Cisco Systems, Inc.(U.S.), Aon Plc (U.K.), IBM (U.S.), Check Point Software Technologies Ltd. (Israel), CyberArk Software Ltd. (U.S.), F5, Inc. (U.S.), FireEye, Inc. (U.S.), Forcepoint (U.S.), Fortinet, Inc (U.S.), Amazon Web Services, Inc. (U.S.), Oracle (U.S.), Palo Alto Networks (U.S.), Imperva (U.S.), Qualys, Inc (U.S.), Accenture (Ireland), HCL Technologies Limited (India), Capgemini (France), Cognizant (U.S.), Broadcom (U.S.), and Wipro (India)
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Market Opportunities
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Cyber Insurance Market Definition
Cyber insurance is a type of insurance coverage designed to protect businesses and individuals from internet-based risks and threats. It typically covers losses related to data breaches, cyberattacks, ransomware, and other forms of cybercrime. Policies may include coverage for costs associated with investigations, legal fees, notifications to affected parties, and financial losses resulting from cyber incidents.
Cyber Insurance Market Dynamics
Drivers
- Surge in Stringent Regulations
Regulations such as GDPR in Europe and CCPA in California impose strict requirements on how businesses handle and secure personal data, with substantial penalties for non-compliance. To mitigate financial risks associated with regulatory fines and legal costs, businesses increasingly turn to cyber insurance companies. These companies offer policies that provide coverage for legal expenses and regulatory fines, incentivizing proactive cybersecurity measures to align with regulatory standards. This alignment helps businesses manage compliance more effectively while safeguarding against potential financial liabilities arising from data breaches and privacy violations.
- Rising Incidences of Cyberattacks
As cyber threats become more sophisticated and frequent, businesses face increased risks of data breaches, ransomware attacks, and other forms of cybercrime that can result in substantial financial losses and reputational damage. This trend has heightened awareness among organizations about the importance of mitigating these risks through insurance coverage. Cyber insurance offers financial protection by covering costs related to incident response, including forensic investigations, legal fees, and customer notifications. As businesses seek to safeguard their operations and recover quickly from cyber incidents, the demand for cyber insurance policies that address these specific risks continues to grow rapidly.
Opportunities
- Heightened Awareness among Businesses
Heightened awareness among businesses about cyber threats and data breaches presents a significant opportunity for the cyber insurance market. As companies increasingly recognize the financial and operational risks associated with cyberattacks, they are more expected to seek comprehensive coverage to mitigate these risks. This growing awareness drives demand for cyber insurance policies that offer protection against data breaches, ransomware attacks, and other cyber incidents. Consequently, insurers can expand their offerings and attract a broader customer base, fueling market growth and innovation in cyber risk management solutions.
- Growing Demand for Cyber Insurance
As cyber threats such as ransomware attacks become increasingly prevalent, businesses are seeking robust protection against potential financial losses from extortion attempts. This need drives demand for specialized cyber insurance policies that cover extortion-related costs, including ransom payments and associated recovery expenses. Insurance providers are developing tailored products to address these emerging risks, offering businesses financial safeguards and expert support. Consequently, the rise in cyber extortion incidents creates a lucrative market for innovative insurance solutions, presenting substantial growth prospects for insurers in this space.
Restraints/Challenges
- High Policy Complexity
Policy complexity is the intricate nature of coverage terms, conditions, and exclusions. Insurers often tailor policies to address specific cyber risks, resulting in a wide range of coverage options that can be challenging for businesses to navigate. Understanding the scope of coverage, limitations, and obligations under different policy scenarios requires technical expertise and careful scrutiny. This complexity can deter businesses from purchasing adequate coverage or lead to disputes during claims processing, hindering the market's growth and effectiveness in addressing cyber risks comprehensively.
- High Fluctuations in Prices
The unpredictability of cyber risks and their frequency and severity can lead insurers to adjust premiums frequently, causing instability for businesses budgeting for insurance costs. The lack of historical data and actuarial models specific to cyber risks make it challenging for insurers to accurately price policies, leading to wide variations in premiums based on perceived risk. Thirdly, large-scale cyber events can trigger sudden increases in demand for coverage, driving up prices due to limited underwriting capacity. These fluctuations complicate risk management and financial planning for businesses, potentially deterring some from investing in adequate cyber insurance protection.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Recent Development in Cyber Insurance Makret
- In December 2022, Grover announced Grover Connect in the U.S., collaborating with Gigs to operate as a mobile virtual network operator (MVNO). This service complements Grover's tech rental offerings, enhancing connectivity options for users
- In October 2022, Upcover launched Cyber and Privacy Liability Insurance targeted at Australian SMEs, following the Optus cyberattacks and in line with Cyber Security Awareness Month. The insurance aims to protect small businesses from financial losses due to cyber incidents
- In August 2022, Coalition completed the acquisition of Digital Affect Insurance Company from Munich Re Digital Partners U.S. Holding Corporation, after receiving regulatory approval across all 50 states. Coalition specializes in proactive digital risk mitigation, distinguishing itself as an Active Insurance company in the property and casualty sector
Cyber Insurance Market Scope
The market is segmented on the basis of component, insurance type, insurance coverage, organization size and application coverage type, end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component
- Solutions
- Cybersecurity Insurance Analytics platform
- Disaster Recovery and Business Continuity
- Cybersecurity Solution
- Cyber Risk and Vulnerability Assessment
- Cybersecurity Resilience
- Services
- Consulting/Advisory
- Security Awareness Training
- Other
- Infrastructure Services
- Implementation
- Support and Maintenance
Insurance Type
- Packaged
- Standalone
Insurance Coverage
- Data Breach
- Data Loss
- Denial of Service and Down-Time
- Ransomware Attacks
- Others
- Third Party data
- Business Disruption
- Social Engineering
- Cyber Liability
- Source/target
- Internal
- External
Organization Size
- Large Enterprises
- Small and Medium-Sized Enterprises
Application
- Information and Communication Technology
- Financial Services
- Manufacturing
- Retail
- Healthcare
- Others
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
- Privacy, and Security Liability
- Network Security Liability
- Media and Communication Liability
End user
- Technology Provider
- Insurance Companies
- Third-party administrators, brokers and Consultancies
- Government Agencies
- Insurance Provider
- Financial provider IT and ITES
- Healthcare and Life Sciences
- Retail and E-commerce
- Telecom
- Travel, tourism and Hospitality
- Others
- Education
- Manufacturing
- Energy and Utilities and Government
Cyber Insurance Market Region Analysis
The market is analyzed and market size, volume information is provided by country, type, deployment and end user as referenced above.
The countries covered in the market report are the U.S., Canada, Mexico, Brazil, Argentina and Rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA).
North America dominates the market due to substantial investments in R&D by the IT and communication sectors, along with rapid technological advancements. The region benefits from a favorable regulatory framework, heightened customer expectations, and intense market competition. These factors collectively contribute to North America's dominance in the OT security landscape.
Asia-Pacific is expected to experience rapid growth due to its expanding industrial development and the presence of numerous manufacturing organizations. There is a rising need to consolidate threat detection and prevention operations in this area. Additionally, enterprises are increasingly emphasizing the importance of security measures, driving the demand for advanced security solutions.
The country section of the global sales force automation software market report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as consumption volumes, production sites and volumes, import export analysis, price trend analysis, cost of raw materials, down-stream and upstream value chain analysis are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Cyber Insurance Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.
Some of the major players operating in the market are:
- American International Group, Inc. (U.S.)
- Cisco Systems, Inc.(U.S.)
- Aon Plc (U.K.)
- IBM (U.S.)
- Check Point Software Technologies Ltd. (Israel)
- CyberArk Software Ltd. (U.S.)
- F5, Inc. (U.S.)
- FireEye, Inc. (U.S.)
- Forcepoint (U.S.)
- Fortinet, Inc (U.S.)
- Amazon Web Services, Inc. (U.S.)
- Oracle (U.S.)
- Palo Alto Networks (U.S.)
- Imperva (U.S.)
- Qualys, Inc (U.S.)
- Accenture (Ireland)
- HCL Technologies Limited (India)
- Capgemini (France)
- Cognizant (U.S.)
- Broadcom (U.S.)
- Wipro (India)
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