Cybersecurity Insurance Market - By Component (Solution, Services), By Enterprise Size (Large Enterprise, SMEs), By Insurance Type (Packaged, Standalone), By Coverage Type (First-Party, Liability Coverage), By End Use, & Forecast 2024 – 2032

Published Date: July - 2024 | Publisher: MRA | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format

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Cybersecurity Insurance Market - By Component (Solution, Services), By Enterprise Size (Large Enterprise, SMEs), By Insurance Type (Packaged, Standalone), By Coverage Type (First-Party, Liability Coverage), By End Use, & Forecast 2024 – 2032

Cybersecurity Insurance Market Size

Hey there! So, the market for cybersecurity insurance was worth around $16.4 billion in 2023, and it's expected to keep growing by more than 20% each year until 2032. Governments are getting serious about making sure businesses follow cybersecurity rules and regulations. Plus, laws like the GDPR (which is all about protecting people's personal data) are getting stricter all over the world. The GDPR, which is one of the toughest data protection laws out there, is making companies take extra precautions with how they collect, use, and store personal info. It also gives people more control over their data, like the right to see it, fix any mistakes, or even delete it. To follow these rules and protect themselves from any trouble, companies may need to buy cybersecurity insurance. This is good news for the market because it means more people will be buying insurance to stay compliant and avoid risks.

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A noteworthy rise in cybersecurity incidents and associated costs could drive the cybersecurity insurance business through 2032. Cybersecurity incidents can result in significant financial losses, including data recovery, business interruption, legal expenses, and reputation damage. According to a study conducted by Comparitech, 108 individual ransomware attacks affected 2,302 medical organizations in 2021, impacting 19.76 million patient records. These attacks cost medical entities an estimated USD 7.8 billion in downtime alone. Cyber insurance provides financial protection against these potential losses, adding to its popularity among organizations.

Cybersecurity Insurance Market Report Attributes
Report Attribute Details
Base Year 2023
Cybersecurity Insurance Market Size in 2023 USD 16.4 Billion
Forecast Period 2024 to 2032
Forecast Period 2024 to 2032 CAGR 20.9%
2032 Value Projection USD 88.8 Billion
Historical Data for 2018 – 2023
No. of Pages 300
Tables, Charts & Figures 355
Segments covered Component, Enterprise Size, Investment Type, Coverage Type, End use
Growth Drivers
  • Growing cyber threats including data breaches and ransomware attacks
  • Stringent regulatory compliance in various economies
  • Evolving cyber insurance products
  • Growing cybersecurity awareness and education
  • Rising business continuity concerns
Pitfalls & Challenges
  • Increasing complexity of cyber risks
  • High cost of claims

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However, some businesses might be hesitant to purchase cyber insurance due to concerns about sharing sensitive data with insurance companies and potential legal implications in the event of a cyber incident. Also, the absence of standardization across cyber insurance policies can create confusion and hinder the comparison of different offerings. This lack of standardization can make it difficult for businesses to select the most suitable policy for their needs, driving down market growth.

COVID-19 Impact

The COVID-19 had a notable impact on the cybersecurity insurance market due to the surge in remote work and digitalization during the pandemic. The rapid shift to remote work increased cyber vulnerabilities, leading to a rise in cyberattacks. According to Harvard Business Review, 2020 witnessed a significant rise in the frequency of cyber-attacks and ransom payments, with the amount companies paid to hackers rising by 300%.

As a result, many organizations sought to bolster their cybersecurity measures and invest in cyber insurance to protect against potential financial losses from breaches. However, the increased frequency and severity of cyber incidents also put pressure on insurance providers, leading some to adjust their coverage terms and premiums to manage the heightened risk. Instances of cyberattacks targeting healthcare institutions and pandemic-related phishing scams further highlighted the importance of cybersecurity insurance in mitigating pandemic-induced cyber risks.

Cybersecurity Insurance Market Trends

Insurance companies are continuously innovating and developing new products to meet the evolving needs of businesses. For instance, some insurers are now offering cyber risk management services in addition to traditional insurance policies. These services can help business access their cyber risk, develop and implement security controls, and respond to cyberattacks.

Likewise, Parametric cyber insurance pays out based on the occurrence of a specific event, such as a data breach or a denial-of-service attack. This is in contrast to traditional cyber insurance, which pays out based on the actual financial losses incurred by the insurer. These innovations have led to increased competition and expanded offerings in the cybersecurity insurance industry, creating a robust growth outlook for the cybersecurity insurance industry.

Cybersecurity Insurance Market Analysis

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Depending on how big they are, the market can be divided into big businesses and small and medium-sized businesses (SMEs). In 2023, the big business market had more than 61% of the total market. Big businesses are buying more cybersecurity insurance because there are more cyber threats, like more frequent and smarter cyberattacks. Data breaches, ransomware attacks, and other cyber incidents put big businesses at risk of losing a lot of money, so insurance is important for making up for any losses that might happen. Rules that businesses have to follow and the need to manage risks with third-party companies also make big businesses want to buy cybersecurity insurance. The market for insurance is coming up with new ways to do things, and more people are becoming aware of cyber risks. This is also making big businesses buy more cybersecurity insurance.

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When it comes to using cybersecurity insurance, there are different groups based on what they dobanking and finance, technology and communication, healthcare, making things, selling things, and others. In 2023, banks and finance companies made up 26% of the total cybersecurity insurance market. Because they handle a lot of important transactions and personal information, companies in this group are often targeted by cybercriminals who want financial gain or data theft. For instance, the Equifax data breach in 2017 showed how much money can be lost and how a company's reputation can be damaged by cyberattacks. As a result, more banks, financial institutions, and insurance companies are buying cybersecurity insurance to reduce potential losses, keep their customers' trust, and keep their businesses running in the face of cyber threats.

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Hey there! You know how important cybersecurity is, right? Well, it's a big deal in North America. In 2023, businesses in North America spent a whopping 32% of their cybersecurity insurance budgets on protecting themselves. And that number is only going to keep growing until 2032! Why? Because North America is all about technology. We've got a lot of businesses that rely on computers and the internet to get stuff done. And with all those gadgets comes a whole lot of chances for hackers to do their thing. Just think about what happened with the SolarWinds attack a few years ago. That mess cost a lot of businesses a lot of money. It's like, you can't trust anyone online these days! So, what are businesses doing? They're getting smart. They're buying cybersecurity insurance to protect themselves from the big, bad cyber world. This way, if they get hacked or someone steals their data, they've got a backup plan to keep their business up and running.

Cybersecurity Insurance Market Share

Major players operating in the cybersecurity insurance industry are

  • American International Group Inc.
  • Aon PLC
  • Axis Capital
  • BitSight
  • Corporation
  • Liberty Mutual
  • Lockton Companies Inc.
  • Munich RE
  • The Chubb Corporation
  • The Hanover Insurance Inc.
  • Zurich Insurance Co. Ltd.

These companies focus on strategic partnerships and product launches to increase their market share and provide insurance cover to a wide range of organizations.

Cybersecurity Insurance Industry News

  • In April 2023, Chubb announced that it would be expanding its cyber insurance coverage to include ransomware attacks. This expansion is in response to the growing number of ransomware attacks that have been targeting businesses in recent years.

The cybersecurity insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Component

  • Solution
  • Service

Market, By Enterprise Size

  • Large enterprise
  • SMEs

Market, By Insurance Type

  • Packaged
  • Standalone

Market, By Coverage Type

  • First-party
  • Liability coverage

Market, By End Use

  • IT & telecom
  • BFSI
  • Manufacturing
  • Healthcare
  • Retail
  • Others

The above information is provided for the following regions and countries

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ 
  • Latin America
    • Brazil
    • Mexico 
  • MEA
    • South Africa
    • UAE
    • Saudi Arabia

Frequently Asked Questions (FAQ)

What is the size of the cybersecurity insurance market?

Market size for cybersecurity insurance was worth USD 16.4 billion in 2023 and is projected to expand at over 20.5% CAGR from 2024 to 2032 driven by stringent regulatory compliance across several economies.

Why is the demand for cybersecurity insurance gaining traction from the BFSI end-use segment?

The BFSI segment accounted 26% share of the cybersecurity insurance industry in 2023 and is projected to witness high demand through 2032 across the banking, financial services, and insurance (BFSI) sector due to the sector's high-value transactions and sensitive customer data.

How big is the North America industry for cybersecurity insurance?

North America held more than 32% share of the cybersecurity insurance industry in 2023 and is set to expand at a notable CAGR from 2024-2032 attributed to the region's highly digitalized economy, extensive use of technology, and the increasing frequency of cyberattacks.

Which are the major firms operating in the cybersecurity insurance business?

American International Group Inc., Aon PLC, Axis Capital, BitSight, Corporation, Liberty Mutual, Lockton Companies Inc., Munich RE, The Chubb Corporation, The Hanover Insurance Inc., and Zurich Insurance Co. Ltd. are among the top firm engaged in the cybersecurity insurance market.

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