Cyber Insurance Market Trends and Forecast to 2031

The Cyber Insurance market size is expected to grow from US$ 13.83 billion in 2023 to US$ 55.48 billion by 2031; it is anticipated to expand at a CAGR of 18.9% from 2023 to 2031. Cyber insurance, also known as cyber liability insurance or cybersecurity insurance, is a contract that an organization can purchase to assist in decreasing the financial risks involved with conducting business online. In exchange for a monthly or quarterly charge, the insurance policy transfers some of the risk to the insurer.

Cyber Insurance Market Analysis

The Cyber Insurance market forecast is estimated on the basis of various secondary and primary research findings, such as key company publications, association data, and databases. Cyber insurance is becoming increasingly important for all businesses as the threat of cyberattacks on applications, devices, networks, and users escalates. That is because data compromise, loss, or theft can have a substantial impact on a business, ranging from customer loss to reputational and economic damage. Enterprises may also be held accountable for damages caused by the loss or theft of third-party data. A cyber insurance policy can protect the organization from cyber events, such as cyber terrorism, and assist with the resolution of security incidents. For instance, according to a 2024 report by ASTRA IT, Inc., Cybersecurity statistics show that there are 2,200 cyber attacks every day, with one occurring every 39 seconds on average. In the United States, a data breach costs an average of US$ 9.44 million, with cybercrime costs reaching up to US$ 8 trillion in 2023.

Cyber Insurance

Industry Overview

• Cyberattacks and the number of compromised digital assets increased concurrently. Ransomware and supply chain assaults have dominated the cyber risk landscape over the last few years. Future cyberattacks will be hastened by important technology trends such as artificial intelligence (AI) like ChatGPT, the so-called "metaverse," and the expanding worlds of IT, IoT, and operational technology (OT).
• Malware incidences increased in 2022, hitting 5.5 billion attacks, a 2% increase year on year, according to the SonicWall Cyber Threat Report for 2023. Malware is malicious software that infects a computer and is intended to disrupt, damage, or gain unauthorized access to the computer system.
• In addition to the increasing sophistication of cyber-criminal operations, companies globally are more vulnerable than ever to geopolitical crises, which are already having an unprecedented influence on cybersecurity. In today's digital age, cyber risk management is essential. Demand for cyber insurance is high because it is such an important aspect of this. Creating a robust cyber insurance market is a critical task for the insurance industry.

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Cyber Insurance Market: Strategic Insights

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Cyber Insurance Market Driver

Increased Awareness of Cyber Risks to Drive the Cyber Insurance Market

• A surge in cyberattacks, combined with growing knowledge of such crimes, has led to an increase in demand for cyber insurance plans. The increase in such instances has also resulted in a surge in claims for insurance firms, forcing them to tighten their underwriting criteria.
• In the US since 2004, October has been celebrated as Cyber Security Awareness Month. Every year in this month public and private sectors work together in dedication to raise awareness about the importance of cybersecurity. Over time, it has evolved into a collaborative effort between government and industry to raise cybersecurity awareness, inspire public action to reduce online risk and generate national and worldwide discussion about cyber dangers. October 2023 was the twentieth Cybersecurity Awareness Month.
• In 2023, the Cybersecurity and Infrastructure Security Agency (CISA) in the US launched a cybersecurity awareness program name Secure Our World. This will be the enduring theme for all the upcoming cybersecurity awareness months.
• Similarly, many countries across the world have been initiating programs to create cyber security awareness among the netizens. For instance, Poland's Cybersecurity Strategy for 2019-2024 aims to improve resistance to cyber threats and strengthen data protection. This includes raising awareness about cybersecurity. Portugal's Cybersecurity Strategy 2019-2023 focuses on "prevention, education, and awareness". It includes specific action points such as promoting cross-cutting cybersecurity training programs for organizations and citizens, strengthening cyberspace security skills in education, and promoting digital literacy.

Cyber Insurance

Market Report Segmentation Analysis

• Based on the end user, the cyber insurance market report is segmented into healthcare, retail, BFSI, it & telecom, manufacturing, and others.
• The BFSI segment is expected to hold a significant cyber insurance market share in 2023. With increased cyber risk, banks and financial institutions are putting more emphasis on strengthening their cyber resilience. Financial institutions have broad operational scopes across numerous business lines and require a comprehensive cyber insurance plan to manage cyberattacks and business disruption.

Cyber Insurance

Market Analysis by Geography

The scope of the cyber insurance market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant cyber insurance market share. This supremacy is due to the region's superior technological infrastructure, the presence of big multinational firms, and increased awareness of cyber risks.

Cyber Insurance

Market Report Scope

Cyber Insurance Market Regional Insights

The regional trends and factors influencing the Cyber Insurance Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Cyber Insurance Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Cyber Insurance Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Cyber Insurance Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Cyber Insurance Market are:

1. The List of Companies
2. The Hartford
3. Beazley
4. Zurich
5. AXIS Capital Holdings

Disclaimer: The companies listed above are not ranked in any particular order.

The "Cyber Insurance Market Analysis" was carried out based on core investment strategies and geography. In terms of type, the market is segmented into standalone and packaged. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Cyber Insurance

Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the Cyber Insurance market. A few recent key market developments are listed below:

• In February 2023, Munich Re Specialty Insurance (MRSI) announced the launch of Reflex, a tailored cyber risk management program. Reflex is a white-glove program run by a team of Munich Re program specialists. Insured individuals will have guided access to services customized to their changing requirements. A team of industry professionals in privacy, network security, and cyber training and awareness delivers program services.

[Source: Munich Re, Company Website]

Cyber Insurance

Market Report Coverage & Deliverables

The market report "Cyber Insurance Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.