Cyber Security Insurance Market

Report Scope & Overview:

Cyber Security Insurance Market size was valued at USD 10.54 Bn in 2022 and is expected to reach USD 42.22 Bn by 2030 and grow at a CAGR of 18.93% over the forecast period 2023-2030.

The Cyber Security Insurance Market is intended to assist organizations in the case of a cyber-related security breach or similar event. It offers coverage for both first-party and third-party claims in order to reduce risk exposure by offsetting expenses associated with the recovery of internet-based cyber damages. It often involves damages from network security breaches, loss of privacy, and indemnity from data breach-related claims, among other things. These assaults have become more intense and frequent, posing a hazard to individuals, corporations, and governments, encouraging the development of Cyber Security Insurance solutions.

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Cyber-attacks have a negative impact on enterprises in the form of a diminishing consumer base, economic interruption, regulatory fines, legal penalties and attorney bills, intellectual property loss, and reputational harm. The Cybersecurity Insurance Market is expected to assist organizations in avoiding losses caused by possible cybercrime threats such as ransomware, malware, distributed denial-of-service attacks, and other threats that can seriously harm a network. The Cyber Security Insurance Market covers a company's responsibility for a data breach including sensitive client information such as credit card numbers, social security numbers, driver's license numbers, account numbers, and health records. It aids in the management of access control, the protection of the system against viruses, malware, and unauthorized access, the protection of data, and the defense against other system-level security risks.

MARKET DYNAMICS:

KEY DRIVERS:

• Increased cybersecurity rules and legislation will increase demand for insurance cover.

• High rate of financial loss recovery to boost market growth.

• Cyber dangers are becoming more frequent and sophisticated.

RESTRAINTS:

• Lack of knowledge about cybersecurity insurance and apprehension about selecting cybersecurity insurance over cybersecurity solutions.

• Costs of cybersecurity insurance are skyrocketing.

OPPORTUNITY:

• Property and casualty insurance excludes cybersecurity insurance coverage.

• Artificial intelligence and blockchain technology use for risk analytics.

CHALLENGES:

• Despite rising cybersecurity threats, cyber insurers are struggling to find momentum.

• Concerns about data privacy.

• Ineffective underwriting due to a lack of awareness, technological expertise, and past cyber data.

IMPACT OF COVID-19:

Customers have been compelled to stay indoors and work from home due to the COVID-19 epidemic. This has increased the likelihood of cyber-attacks and highlighted concerns about Cyber Security Insurance during the pandemic. Even after the epidemic has passed, ransomware attacks, data breaches, and business interruptions may fuel the demand for Cyber Security Insurance. The belief in cyber risk may also drive market demand, and the inclusion of incident response management in new policies can help navigate market patterns in the future. Future Cyber Security Insurance plans are likely to address the challenges of silent cyber and the extension of coverage categories for workers’ compensation, specialty lines, and personal lines.

MARKET ESTIMATION:

The market is divided into two segments depending on the deployment model cloud-based and on-premise. The biggest market share was held by the Hydroponics On-premise sector. The segment's reasons include a propensity to preserve confidential data within the firm to minimize data leaks, security, and authentication difficulties if stored on the cloud. Furthermore, it enables the firm to monitor data in-house, reducing reliance on third-party service providers. As a result, enterprises gain from data flexibility and adaptive security solutions.

The market is divided into service types such as wireless security, application security, network security, endpoint security, and others. Endpoint security has seen tremendous development as corporations seek to secure end devices such as laptops, mobile devices, and desktops from malicious applications, viruses, and other data theft tactics. The increased use of these devices heightens the requirement for end-point security.

Large enterprises are companies with more than 1,000 employees. These firms make significant investments in innovative technology to boost overall production and efficiency. Large organizations are increasingly turning to cybersecurity insurance solutions, and they are expected to invest heavily in modern cybersecurity insurance solutions in order to guarantee optimal security in their enterprises' fierce competitive environment. Because they employ a huge number of cloud and Internet of Things (IoT) based apps that are especially vulnerable to cyberattacks, major organizations have implemented cybersecurity insurance solutions. Furthermore, the need for cybersecurity insurance solutions is being driven by intense regulatory pressure.

In 2021, the BFSI application category had the lion's share of the Cyber Security Insurance market. Because of the increased monetary activities, it has arisen as a vital industry. It is more vulnerable to cybersecurity incidents like as large-scale breaches, scams, and heists. The security of banking and financial services is a concern since these services are seen as the backbone of economies. Over the projection period, the healthcare application category is expected to develop at the fastest CAGR. The increased use of digitization in the healthcare business to facilitate quick access to clients' data has resulted in internet risks. External and internal dangers threaten sensitive data. In recent years, the healthcare industry has been a popular target for hackers. In response to cyberattacks, healthcare firms are expected to purchase Cyber Security Insurance as a handy way to mitigate some of the costs.

KEY MARKET SEGMENTS:

On The Basis of Deployment Model

• Cloud-based

• On-premise

On The Basis of Service Type

• Wireless security

• Application security

• Network security

• Endpoint security

• Others

On The Basis of Organization

• SMEs

• Large Enterprise

On The Basis of Application

• BFSI

• Healthcare

• IT & Telecom

• Retail

• Others

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REGIONAL ANALYSIS:

The United States is often regarded as the world's most important market for cybersecurity insurance. Another explanation for the country's large share is that it is home to a substantial number of prominent participants in the sector. Over the years, the region has seen a substantial number of data breaches. Furthermore, cyberattacks in the country are constantly expanding and have hit an all-time high, owing mostly to the region's rapidly increasing number of connected devices. Consumers in the region use public clouds, and many of their mobile applications already have their personal information loaded for the ease of shopping, banking, and communication, among other things.

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 major key players are Tata Consultancy Services Limited, Guy Carpenter and Company LLC., At-Bay Inc., Lloyds Bank PLC, AXA SA, Cisco Systems Inc., Chubb Limited, Apple Inc., American International Group Inc., Zurich Insurance Group & Other Players

AXA SA - Company R&D Analysis