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The Global Cyber Insurance Market size is estimated to grow by USD 42.81 billion, growing at a CAGR of 35.92% between 2022 and 2027. The growth of the market depends on several factors, including the adoption of technology, the growing awareness among businesses and individuals, and the government's initiatives to promote cyber insurance.
Rising cyber-attack threats have spiked demand. With more digital reliance, the need to shield against financial and reputational hits from cybercrime has surged. Businesses and individuals seek coverage to cope with increasing risks. In addition to the financial benefits, many businesses and individuals are recognizing the reputational benefits of having coverage. This trend fuels market growth by addressing the attack aftermath and offering financial protection.
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. American International Group Inc the company offers solutions for cyber insurance that helps to minimize risk exposure and effectively determine and mitigate silent cyber exposure by systemically reducing accumulation risks.
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The adoption of technology is notably driving the market growth, although factors such as lack of standardization may impede the market growth. Our researchers analyzed the data with 2022 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-based services, 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 the demand 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.
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 the market during the forecast period.
The market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The market share growth by 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 2.50 billion in 2017 and continue to grow by 2021. 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 market during the forecast period.
The cyber insurance statistics market report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, 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.
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North America is estimated to contribute 57% 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 forecast period.
The Market responds to the growing digital transformation and adoption of emerging technologies, addressing rising cyber threats. Assumptions regarding cybersecurity solutions and expenditures drive the demand for cybersecurity insurance policies. The market ecosystem encompasses various cybersecurity insurance solutions and services, including investigation expense coverage. Additionally, there's a focus on developing cybersecurity insurance analytics platforms to assess and mitigate risks effectively. This market evolution reflects the need for comprehensive protection against cyber risks amidst increasing reliance on digital technologies.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 35.92% |
Market growth 2023-2027 |
USD 42.81 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
30.88 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 57% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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., 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., Zurich Insurance Co. Ltd., and Chubb Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, 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 market growth and trends 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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