Cyber Insurance Market Size, Share & Segmentation by Company Size (Large Companies and Small & Medium-sized Companies), by Component (Solution and Service), by Coverage Type (First-party Coverage and Third-party Coverage), by Industry Vertical (BFSI, IT & Telecom, Retail & E-commerce, Healthcare, Manufacturing, Government & Public Sector, Others), by Regions and Global Market Forecast 2023-2030

Cyber Insurance Market Report Scope & Overview:

The Cyber Insurance Market size was valued at USD 11.12 Bn in 2022 and is expected to reach USD 55.97 Bn by 2030, and grow at a CAGR of 22.38% over the forecast period 2023-2030.

Cyber insurance is intended to assist a company in the case of a cyber-related security breach or another similar occurrence. It provides coverages for both first-party and third-party claims in order to reduce risk exposure by balancing the expense of recovering internet-based cyber damages. It often covers damages from network security breaches, loss of privacy, and indemnity from data breach claims, among other things. The severity and frequency of these assaults have increased, posing a threat to individuals, businesses, and governments, encouraging the development of cyber insurance solutions. Cybersecurity attacks have a negative impact on enterprises, including decreased consumer base, economic interruption, regulatory fines, legal penalties & attorney expenses, intellectual property loss, and reputational harm.

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Cyber insurance is critical for organizations and consumers to address cyber threats. It also provides policyholders with financial protection against assaults that cannot be totally prevented. Cyber insurance protects a business from internet-based risks and provides first-party coverage for damages resulting from extortion, data destruction, hacking, theft, and denial-of-service attacks. They also provide liability coverage, which allows businesses to cover damages incurred as a result of omissions and mistakes, defamation, and failure to secure data, as well as security audits and post-incident investigation costs.

MARKET DYNAMICS:

KEY DRIVERS:

• There are several cyber risks.

• Policymakers and regulatory organizations have made steps to bolster defenses.

• Firms' proactive actions to prevent losses.

RESTRAINTS:

• High cyber insurance premiums.

• inadequate coverage for vulnerable systems.

• Premium fees are rising, as a charge for data recovery and negotiating with hackers.

OPPORTUNITY:

• Blockchain and risk analytics software adoption

• Without a middleman, transactions and settlements move at a quicker pace.

• Insurers' need for first-party coverage has increased as a result of their increased internet presence.

CHALLENGES:

• The scarcity of cyber security professionals to monitor and prevent internet attacks

• Cyber intelligence training and in-house courses to educate personnel can help keep the dangers at bay.

IMPACT OF COVID-19:

Customers have been compelled to stay indoors and work from their houses because of the COVID-19 epidemic. As a result, the potential of cyber-attacks has increased, prompting inquiries about cyber insurance during the pandemic. Even after the epidemic has passed, ransomware attacks, data breaches, and business interruptions may fuel the demand for cyber insurance. The perception of cyber risk may also drive market demand, and the addition of incident response management in recent rules can help market participants navigate future trends. Future cyber insurance plans are likely to address concerns such as silent cyber and the extension of coverage regions for workers’ compensation, specialty lines, and personal lines.

MARKET ESTIMATION:

Because of the expansion of technology and trends such as the Internet of Things (IoT), cloud technologies, machine learning, artificial intelligence, and big data, organizations of all sizes are exposed to cyberattacks. In 2021, the big enterprise segment dominated the market, and this trend is expected to continue during the forecast period. These businesses can afford to invest more in cybersecurity solutions since they have a larger budget. Furthermore, significant companies are increasingly investing in cyber insurance plans to mitigate the dangers of a cyberattack. Because they lack the essential security infrastructure, small and medium companies (SMBs) are more vulnerable to cyberattacks. Emerging dangers are being identified, assessed, and responded to. By providing first-party and third-party protection coverage, cyber insurance has the potential to save such organizations money.

During the projected period, the solutions category is predicted to increase the most. Installing cybersecurity software and ensuring that large and small businesses are prepared for online threats will fuel segment demand through 2028. Due to fresh occurrences of cyber extortion and cash transfer fraud, the first-party coverage section of the global cyber insurance market is likely to see rising demand. The reliance on the internet to complete transactions and communicate with employers can pose significant hazards, driving demand for cyber security protection.

In 2021, the banking and financial services (BFS) application area commanded the majority of the cyber insurance market. Because of the increase in monetary activities, it has become a vital industry. It is more vulnerable to cybersecurity incidents including large-scale breaches, scams, and heists. Because banking and financial services are regarded to be the backbone of economies, their security is a major concern. Over the projected period, the healthcare application category is expected to develop at the fastest rate. The rapid use of digitization in the healthcare sector, which allows for simple access to consumers' data, has resulted in online risks. External and internal dangers threaten the sensitive data. In recent years, hackers have increasingly targeted the healthcare industry.

KEY MARKET SEGMENTS:

 On The Basis of Company Size:

• Large Companies

• Small & Medium-sized Companies

On The Basis of component:

• Solution

• Cybersecurity insurance analytics platform

• Disaster recovery and business continuity

• Cybersecurity solution

• Service

• Consulting/ Advisory

• Security awareness training

• Others

On The Basis of 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

On The Basis of Industry Vertical:

• BFSI

• IT & Telecom

• Retail & E-commerce

• Healthcare

• Manufacturing

• Government & Public Sector

• Others

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REGIONAL ANALYSIS:

Because of the existence of huge multinational corporations across a variety of industries, North America is likely to lead the worldwide market. Because of the necessity to monitor and investigate cyber threats, the United States generates the most money in the area. Because of the awareness of prominent corporations and the assistance of European Union policymakers in light of multiple data breaches, Europe is poised to dominate in the global cyber insurance market. Due to the integration of digital technology into daily operations and an increase in cyber assaults in 2021, the United Kingdom is expected to take a substantial portion of the regional market. The establishment of cyber security rules and coordination between private and governmental parties to ensure cyber insurance can offer a boost to the region's economy and increase ease of doing business ratings.

REGIONAL COVERAGE:

• North America

  • USA

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

• Asia-Pacific

  • Japan

  • south Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

• The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

KEY PLAYERS:

The key market players are Allianz, American International Group, Inc., Aon plc, AXA, Berkshire Hathway Inc, Lloyd’s of London Ltd, Lockton Companies, Inc, Munich Re, The Chubb Corporation, and Zurich.

Zurich -Company Financial Analysis