Global Cyber Insurance Market Size By Deployment Model(Cloud-based, On-premise), By Service Type(Wireless security, Application Security, Network Security), By Organization Size(Large Companies, Small and Medium Businesses), By Application(Government, IT and Telecommunications, Banking, Financial Services), By Geographic Scope And Forecast

Cyber Insurance Market Size And Forecast

Cyber Insurance Market size was valued at USD 9.35 Billion in 2021 and is projected to reach USD 68.17 Billion by 2030, growing at a CAGR of 24.1% from 2022 to 2030.

An increase in the adoption of cyber insurance products due to the rise in implications of cyber-attacks on public safety, economic prosperity, and government cyber security has led to significant growth in the Cyber Insurance Market in recent years. The Global Cyber Insurance Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Cyber Insurance Market Definition

Cyber Insurance Market is designed to help an organization with cyber-related security breaches or similar events. It provides coverages related to first parties as well as claims by third parties, in order to mitigate risk exposure by offsetting costs involved with the recovery of internet-based cyber losses. It typically includes losses from network security breaches, loss of privacy, indemnification from lawsuits related to data breaches, and others. These attacks have escalated in terms of intensity and frequency, posing a threat to individuals, organizations, and countries, which have been driving the adoption of cyber insurance solutions.

Cyber-attacks have an adverse impact on businesses such as a declining customer base, disruption of business, regulatory fines, legal penalties & attorney fees, loss of intellectual property, and reputational damage. Cyber Insurance Market is anticipated to aid businesses in minimizing losses incurred due to potential threats of cybercrimes such as ransomware, malware, distributed denial-of-service attacks, or other threats, which can severely compromise a network.

Cyber Insurance Market covers the liability of a business for breach of data, comprising sensitive customer information such as credit card details, social security numbers, drivers’ license numbers, account details, and health records. It helps in managing access control, securing the system against viruses, malware, unauthorized, providing data protection, and defending against other system-level security risks. Various types of cyber security software include anti-virus software, internet security software, malware/spam ware removal, firewall software, network security software and protection software, and many more. The rising popularity of digitalization fuels the growth of the cybersecurity software market.

Global Cyber Insurance Market Overview

All these new cybersecurity rules and laws are really driving the need for insurance that protects against cyber threats. Think about itgovernments and law enforcement around the world are cracking down to keep our data safe. And ever since COVID-19 hit, everyone – from people buying insurance to the folks selling it – are realizing how important cyber insurance is. For instance, back in February 2020, California was even thinking about making it mandatory for state contractors handling personal info! Plus, with data privacy laws like Personally Identifiable Information (PII), Health Insurance Portability and Accountability Act (HIPAA) here in the US, not to mention the global standard like Payment Card Industry Data Security Standard (PCI DSS), and Europe's General Data Protection Regulation (GDPR), insurance companies are really starting to pay attention to cyber insurance.

The increasing digitization has led to tremendous growth in the rate of cyberattacks, more so during the COVID-19 pandemic. Hence, complex governance requirements and regulations in data security are expected to drive the adoption of the Cyber Insurance Market in the future. In addition, increased awareness about business interruption (BI) cyber risks, and a growing number of mandatory legislation for data security in different end-users, such as banking, healthcare, and others are some of the major factors fueling the Cyber Insurance Market growth.

Demand for cyber insurance primarily originated from IT, banking, media, and telecom firms, which are exposed to severe cyberattacks. These firms demand robust cybersecurity structures against malware attacks and the loss of confidential information of clients. However, cyberattacks and threats are inevitable as hackers have developed sophisticated ways of targeting different businesses. The types of cyberattacks against businesses are continually evolving and cyber insurance acts as a convenient solution for organizations to receive compensation for financial losses incurred.

The problem is, cyber insurance is getting expensive, and that's really holding back the market. Insurance companies have been hit hard, shelling out big bucks on claims from all those ransomware attacks lately. And even if the policy doesn't cover the actual ransom, the cost to fix a hacked system is still crazy high. So, cyber insurance companies are bumping up their prices to cover all the extras they're now offering, like negotiating with hackers and helping businesses get their data back after an attack. Because of these rising costs, some organizations are hesitant to buy in. They're choosing to beef up their own cyber security instead of paying those hefty insurance premiums.

Global Cyber Insurance MarketSegmentation Analysis

The Global Cyber Insurance Market is segmented on the basis of Deployment Model, Service Type, Organization Size, Application, and Geography.

Cyber Insurance Market, By Deployment Model

• Cloud-based• On-premise

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Based on Deployment Model, the market is bifurcated Cloud-based, On-premise. The Hydroponics On-premise segment accounted for the largest market share. The factors attributed to the segment include preference to keep the proprietary data within the organization which ensures avoidance of data leaks, security, and authentication issues if stored on the cloud. Moreover, it also helps the organization to monitor the data in-house and reduce dependency on other service providers. Due to this, organizations receive the benefits of flexibility and adaptive security systems for the data.

Cyber Insurance Market, By Service Type

• Wireless security• Application security• Network security• Endpoint security• Others

Based on Service Type, the market is bifurcated into Wireless security, Application Security, Network Security, Endpoint security, and others. The endpoint security segment saw significant growth with organizations looking to protect end devices including laptops, mobile, and desktops, and protect it from malicious programs, viruses, and other data theft measures. The increase in the usage of these devices further increases the need for end-point security.

Cyber Insurance Market, By Organization Size

• Large Companies• Small and Medium Businesses

Based on Organization Size, the market is segmented as Large Companies, Small and Medium Businesses. Large companies segment dominated the market share in the organization size segment owing to the pro-active approach by large companies to invest in data security measures and systems to ensure the integrity of data. Also, large companies are more prone to cyber threats, phishing, ransom wares, and other data theft techniques and thus there is an ever-increasing need to protect data that also involves sensitive data of clients.

Cyber Insurance Market, By Application

• Government• IT and Telecommunications• Banking, Financial Services, and Insurance (BFSI)• Retail• Healthcare• Aerospace and Defense• Manufacturing• Others

Based on Application, the market is segmented as Government, IT and Telecommunications, Banking, Financial Services, and Insurance (BFSI), Retail, Healthcare, Aerospace and Defense, Manufacturing, Others. The government sector contributed the largest to the market share among others. The factors behind the large contribution of the government segment involve increased government spending in various departments to increase the data security measures which contain sensitive government data including classified data. The government segment is highly prone to cyber threats, cyber terrorism, data theft, etc. because of highly sensitive data handled by the government departments.

Cyber Insurance Market, By Geography

• North America• Europe• Asia Pacific• Rest of the world

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When we look at it geographically, the Global Cyber Insurance Market is split up into North America, Europe, Asia Pacific, and, well, the rest of the world. Right now, North America is leading the pack, holding the biggest chunk of the Cyber Security Software Market. That's because they're really keen on beefing up their security. Plus, with so many major companies having their headquarters and offices there, the demand for security is huge. And don't forget those tough government rules pushing everyone to protect their data! But things are really heating up in Asia Pacific. They're showing the fastest growth, thanks to governments in developing countries throwing money at it and the booming industries across the region.

Key Players

The “Global Cyber Insurance Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are IBM Corporation, Sophos, Trend Micro, Cisco Systems, HPE, Fortinet, Check Point Software Technologies Ltd., Juniper Networks, Inc, Symantec Corporation.

The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

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