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The cyber insurance market size is estimated to grow by USD 74.62 billion at a CAGR of 42.36% between 2023 and 2028. The growth of the market hinges on multiple factors. Key among these is the widespread adoption of technology across industries, which increases vulnerability to cyber threats and underscores the need for insurance coverage as well as cybersecurity. Growing awareness among businesses and individuals about the financial and reputational risks associated with cyber incidents drives demand for cyber insurance. Moreover, government initiatives aimed at promoting insurance and encouraging businesses to adopt adequate insurance play a pivotal role. These initiatives create a supportive regulatory environment that fosters market growth by emphasizing the importance of cyber resilience. As cyber threats continue to evolve in complexity and frequency, the proactive adoption of cyber insurance becomes essential for organizations looking to safeguard their operations and data from potential disruptions.
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The market is rapidly evolving amid escalating cyber threats and internet-based attacks. As organizations adopt cloud computing and expand their IT infrastructure, the risk landscape grows more complex. Cyber criminals leverage IoT malware to exploit vulnerabilities, necessitating robust information governance and cybersecurity measures. Remote working and virtual private network have grown, prompting heightened awareness and investments in cyber insurance. Companies provide strategic cyber ILS solutions, enhancing resilience against evolving risks. As threats evolve, proactive information policies and reinsurance partnerships are pivotal in safeguarding against potential disruptions in the digital age.
The cyber insurance market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
By Type
The market share growth of the large enterprise segment will be significant during the forecast period. Large enterprises typically face a higher risk of cyber-attacks due to their size, complexity, and large amount of valuable data they hold. As a result, many large enterprises choose to purchase cyber insurance as a way to mitigate the financial impact of a breach.
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The large enterprises segment was valued at USD 3.15 billion in 2018. Large enterprises often require more comprehensive cyber insurance coverage and specialized services to manage the financial impact of a breach. Cyber insurance providers offer tailored packages to meet the needs of large enterprises, including higher coverage limits, comprehensive coverage, specialized services, and global coverage. By purchasing cyber insurance, large enterprises can help to mitigate the financial impact of a cyber-attack and ensure that they have the resources they need to respond effectively. Such factors will drive the growth of the cyber insurance market during the forecast period.
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North America is estimated to contribute 60% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the policies are offered by various insurance companies, with coverage varying depending on the policy and the insurer. The policies typically provide coverage for a range of events, such as data breaches, network interruption, and cyber extortion. There is a growing awareness among businesses and individuals in North America of the importance of the insurance as the frequency and sophistication of cyber-attacks continue to increase. Considering these factors, the regional market is expected to grow during the market analysis and report period. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The widespread adoption of technology has significantly impacted the growth of the global market share. The increasing use of digital services and the Internet has created new opportunities for cybercriminals, increasing the frequency and severity of cyber-attacks. This has led to increased demand as individuals are looking to protect themselves against the potential financial impact of cybercrime. With the growing number of connected devices, cloud computing, and mobile applications, the exposure to cyber risks is increasing. The increased use of technology has also led to the growth of the digital economy, with businesses and individuals relying on the internet to conduct transactions, store and process data, and manage their finances.
Moreover, the adoption of technology has also made it more challenging for businesses and individuals to secure their systems and data, leading to a greater need. Cyber insurance policies typically provide coverage for a range of events, such as data breaches, network interruption, and cyber extortion, and can help to reduce the financial impact of cybercrime. Thus, the increasing reliance on digital services and the Internet is expected to drive cyber insurance market demand during the market forecast period.
The increased demand for cyber insurance is the key trend in the market. The global cyber survey reveals a significant uptick in cyber threats, including ransomware attacks, phishing scams, and disinformation campaigns, which has led to a rising demand for reinsurance and cyber insurance. Reinsurers are taking notice, recognizing the potential financial risks posed by cybercriminals targeting IT infrastructure, the Internet of Things, operational technology, and cloud computing. Cybercriminals are increasingly utilizing advanced tools like artificial intelligence, data collection, and blockchain projects to carry out sophisticated attacks.
According to experts, cybercrime costs are projected to exceed USD 10 trillion by 2025. With the rise of remote working and the increasing use of VPN, the need for information governance and IT policies has become more critical than ever. Crypto insurance services are also gaining traction as more individuals and businesses adopt cryptocurrency ownership. Cybercriminals continue to exploit vulnerabilities in IT infrastructure, leading to data breaches and cyberattacks, making cyber insurance an essential investment for businesses and individuals alike. Thus, such trends will shape cyber insurance market growth during the forecast period.
The lack of standardization is a major challenge to the growth of the global market. One of the major challenges faced by the global market is the lack of standardization in the coverage offered by different policies. This makes it difficult for businesses and individuals to compare and choose the best policy for their needs and can lead to confusion about what is covered and what is not. The coverage offered by cyber insurance policies can vary greatly, and many policies have exclusions and limitations that are not always clearly stated. This can result in gaps in coverage, which can leave businesses and individuals vulnerable to financial losses in the event of a cyber-attack.
Moreover, the lack of standardization can make it challenging for insurance companies to accurately assess the risk associated with a particular policy and determine the appropriate coverage level. This can lead to difficulties in underwriting policies and can result in some insurance companies declining to offer coverage. In conclusion, the lack of standardization in the coverage is a major challenge facing the market. This makes it difficult for businesses and individuals to compare policies and can result in confusion, gaps in coverage, and difficulties in underwriting. Thus, the lack of standardization in the coverage offered by different policies will challenge cyber insurance market growth during the forecast period.
The cyber insurance market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the cyber insurance market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aon plc - The company offers solutions for cyber insurance that helsp to minimize risk exposure and effectively determine and mitigate silent cyber exposure by systemically reducing accumulation risks.
The cyber insurance market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The cyber insurance market is navigating a dynamic landscape shaped by emerging technologies like the Internet of Things (IoT), operational technology (OT), and blockchain projects. Premium hikes reflect escalating risks, prompting demand for first-party and liability coverage, including specialized crypto insurance services amidst rising crypto ownership. Gen AI and large language models like ChatGPT monitor disinformation, addressing data collection concerns in healthcare. With cyber catastrophe bonds on the rise, insurers mitigate losses from cyber incidents, supporting resilience against hackers exploiting vulnerabilities. The World Economic Forum (WEF) emphasizes cybersecurity readiness as organizations navigate operational challenges, underscoring the market's evolution amid persistent cyber threats.
The cyber insurance market is experiencing significant growth as businesses increasingly recognize the need to protect themselves against advanced digital threats. Ransomware-as-a-service (RaaS) and mail spam attacks are on the rise, making email security a top priority. Phishing attacks, another major concern, continue to evolve, with cybercriminals using increasingly sophisticated tactics to trick users into revealing sensitive information. Crypto ownership also poses a risk, as hackers target digital wallets to steal valuable cryptocurrencies. Ransomware threats continue to loom large, with attacks causing costly disruptions and potentially leading to a cyber catastrophe. To mitigate these risks, many insurers are turning to Gen AI and other advanced technologies to better understand and respond to threats in real-time. Some insurers are even exploring the use of cyber catastrophe bonds to spread risk and provide additional financial protection against large-scale cyber attacks.
In addition, insurers are adapting with innovative solutions such as first-party coverage and cyber catastrophe bonds to mitigate financial losses. Major players lead efforts in AI-driven risk assessment, enhancing underwriting accuracy and policy customization. As ransomware attacks increase in sophistication, the need for comprehensive coverage, including cyber catastrophe bonds, becomes crucial for businesses. Cryptocurrency introduces new complexities, prompting insurers to refine policies that address crypto-related risks. With these developments, the market is evolving rapidly to safeguard against emerging cyber threats and ensure resilience in an increasingly digital world.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 42.36% |
Market growth 2024-2028 |
USD 74,620.3 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
33.88 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 60% |
Key countries |
US, Germany, UK, China, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American International Group Inc., Aon plc, Apple Inc., At Bay Inc., AXA Group, Axis Capital Holdings Ltd., BCS Financial Corp., Beazley Plc, BitSight Technologies Inc., Chubb Ltd., Cisco Systems Inc., CNA Financial Corp., Guy Carpenter and Company LLC, Lloyds Banking Group Plc, Lockton Companies, SecurityScorecard Inc., Tata Consultancy Services Ltd., THE HANOVER INSURANCE GROUP INC., The Travelers Co. Inc., and Zurich Insurance Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our cyber insurance market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Solution
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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