Cyber Liability Insurance Market Growth Insights | 2031

Cyber Liability Insurance Market Size and Forecast (2021-2031), Global and Regional Share, Trends, and Growth Opportunity Analysis: by Coverage (First-party coverage and Third-party coverage), Enterprise Size (SMEs and Large Enterprises); End user (BFSI, IT and ITES, Retail and E-commerce, Travel and Tourism, Hospitality, and Others); and Geography

  • Report Code : TIPRE00039048
  • Category : Banking, Financial Services, and Insurance
  • No. of Pages : 150
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Cyber Liability Insurance Market Growth Insights | 2031

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The cyber liability insurance market is expected to grow from US$ 4.67 billion in 2023 to US$ 19.07 billion by 2031; it is anticipated to expand at a CAGR of 19.24% from 2023 to 2031. Factors such as increasing cyber threats and regulatory compliance are driving the cyber liability insurance market growth.

Cyber Liability Insurance Market Analysis

The cyber liability insurance market is constantly evolving to address the rising challenges posed by cyber threats. As cyber threats become more widespread and sophisticated, there is a rising demand for cyber liability insurance coverage. Organizations across industries are recognizing the need to protect themselves from possible financial losses and reputational damage caused by cyberattacks. The rapid development of technology, such as artificial intelligence, the Internet of Things (IoT), and operational technology (OT), presents both opportunities and risks in the cyber liability insurance market growth. While these technologies offer great benefits, they also create new attack surfaces and vulnerabilities. Insurers have the opportunity to develop innovative coverage solutions to address these emerging risks.

Motor Insurance Market Overview

  • Cyber liability insurance is a type of insurance coverage that helps safeguard businesses from financial losses and liabilities resulting from cyber incidents and data breaches. It provides coverage for expenses related to investigating and remediating cyberattacks, legal responsibilities, business interruption, loss of revenue, and data restoration, among other costs associated with cyber incidents.
  • Insurers are focusing on providing comprehensive risk management and pre-breach services to their policyholders. These services help organizations assess their cyber risks, implement robust risk management strategies, and enhance their cyber resilience. For example, Spring Insure introduced a commercial cyber offering tailored for small and medium-sized enterprises (SMEs), which includes access to risk management and pre-breach services.
  • The market has seen changes in premiums and coverage. Insurance clients are opting for cyber coverage at an increasing rate, leading to adjustments in pricing and availability. Insurers are working to strike a balance between meeting the demand for coverage and maintaining profitability. They are also adapting their coverage offerings to address evolving cyber risks and uncertainties.

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Cyber Liability Insurance Market: Strategic Insights

cyber-liability-insurance-market
Market Size Value inUS$ 4.67 billion in 2023
Market Size Value byUS$ 19.07 billion by 2031
Growth rateCAGR of 19.24% from 2023 to 2031
Forecast Period2023-2031
Base Year2023
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Cyber Liability Insurance Market Drivers and Opportunities

Increasing Cyber Threats to Drive the Cyber Liability Insurance Market

  • The increasing number and complexity of cyber threats, such as data breaches, ransomware attacks, and hacking incidents, are driving the demand for cyber liability insurance in the market. Organizations are recognizing the need to protect themselves from financial losses and reputational damage caused by cyber incidents.
  • Cyber threats have become more prevalent and advanced, posing significant risks to businesses. Data breaches, where sensitive information is compromised, can result in financial losses, legal liabilities, and damage to a company's reputation. Ransomware attacks, where hackers encrypt data and demand a ransom for its release, can disrupt business operations and lead to financial losses. Hacking incidents can compromise systems and networks, allowing unauthorized access to sensitive data.

Cyber Liability Insurance Market Report Segmentation Analysis

  • Based on coverage, the market is segmented into first-party coverages and third-party coverages. The first-party coverage segment is expected to hold a substantial cyber liability insurance market share in 2023.
  • The first-party coverage segment refers to the coverage provided by cyber liability insurance policies for the insured company's losses and expenses resulting from a cyber incident. This coverage is designed to lessen the financial impact on the company that purchased the insurance. This coverage helps cover the expenses incurred by the insured company in responding to a data breach. It may include costs such as forensic investigations to determine the cause and extent of the breach, notification of affected individuals, credit monitoring services, public relations efforts, and legal expenses.

Cyber Liability Insurance Market Regional Analysis

The scope of the cyber liability 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 liability insurance market share. The North American region, particularly the US, dominates the North America market. North America benefits from advanced technological infrastructure and a high level of cyber technology adoption. This creates a greater need for cyber liability insurance as organizations strive to protect themselves from financial losses and reputational damage affected by cyber incidents. The US, in particular, exhibits significant opportunities for cybersecurity insurance solution providers due to its strict regulations and the presence of a diverse range of industries. Cyberattacks have a sizable financial impact on enterprises of all sizes, including critical infrastructure sectors. As a result, organizations in North America are increasingly recognizing the importance of cyber liability insurance.

Cyber Liability Insurance Market Report Scope

The "Cyber Liability Insurance Market Analysis" was carried out based on coverage, vehicle type, application, and geography. In terms of coverage, the market is segmented into first-party coverage and third-party coverage. Based on Enterprise Size, the market is segmented into SMEs and large enterprises. Based on end user, the market is segmented into BFSI, IT and ITES, retail and e-commerce, travel and tourism, hospitality, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Cyber Liability Insurance Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the market. The cyber liability insurance market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. A few recent key market developments are listed below: 

  • In February 2024, RT Specialty, the wholesale distribution division of Ryan Specialty, a leading international specialty insurance firm, announced the addition of Cyber Liability to its proprietary digital platform, RT Connector.

[Source: Ryan Specialty, LLC, Company Website]

  • In July 2023, Risk Strategies, an insurance brokerage, and risk management company, introduced its Cyber Risk Management Platform (RMP), a novel service offering focused on cyber risk management. This platform goes beyond traditional external vulnerability scans by providing clients with practical recommendations to strengthen their cyber defenses.

[Source: Risk Strategies, Company Website]

Cyber Liability Insurance Market Report Coverage & Deliverables

The market report “Cyber Liability 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 level 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.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Coverage, Enterprise Size, End user, and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


Which are the key players holding the major market share of the cyber liability insurance market?

The key players holding majority shares in the market are AIG; AmTrust Financial; AXA SA; Chubb; and GEICO.

What will be the market size of the cyber liability insurance market by 2031?

The market is expected to reach US$ 19.07 billion by 2031.

What is the estimated market size for the cyber liability insurance market in 2023?

The market was estimated to be US$ 4.67 billion in 2023 and is expected to grow at a CAGR of 19.24% during the forecast period 2023 - 2031.

What are the future trends of the cyber liability insurance market?

Integration with cybersecurity solutions is anticipated to play a significant role in the market in the coming years.

What are the driving factors impacting the cyber liability insurance market?

Increasing cyber threats and regulatory compliance are the major factors that propel the market.

  • AIG
  • AmTrust Financial
  • AXA SA
  • Chubb
  • GEICO
  • Hiscox Inc.
  • Nationwide Mutual Insurance Company
  • Progressive Casualty Insurance Company
  • The Hartford
  • Zurich American Insurance Company

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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