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Global Cyber Insurance Market Size is valued at USD 11.0 Billion in 2024 and is predicted to reach USD 32.3 Billion by the year 2034 at a 11.5% CAGR during the forecast period for 2025-2034.
Key Industry Insights & Findings from the Report:
- Rising awareness among businesses and consumers about the importance of cybersecurity is expected to boost demand in the market.
- The increasing recognition of cyber threats is predicted to drive industry growth.
- North America dominated the market and accounted for a revenue share of global revenue in 2024.
- One of the significant threat restraining industry growth is the absence of standardized terminology.
Cyber insurance is a specialized insurance product that protects against the financial risks of cybersecurity threats. It offers coverage for various crimes, including ransom, data loss, hacking, theft, disruption of service, and other online crimes. Organizations are more susceptible to electronic warfare and data breaches as the number of electronic devices used to store data increases.
One of the latest technologies that are evolving the fastest is cloud computing. It dismantles previous barriers in IT, creates new markets, encourages the mobility trend, and makes unified communications breakthroughs possible. Several IT stakeholders and businesses are turning to novel insurance models to evaluate the risks related to retaining sensitive data in the current cybersecurity climate.
Additionally, two of the newest and most promising technologies are blockchain and artificial intelligence (AI) technology, which are anticipated to offer risk analytics solutions and generate new business opportunities for the cyber insurance market growth.
However, as cloud computing is a frequent target of cyberattacks, there is a greater need for cybersecurity insurance. Insurers will take a wider variety of security measures and solutions into account as the cyber insurance market expands. The importance of the data and an organization's capacity to appropriately protect it will be essential factors in assessing overall risk and influencing the adoption of new technologies.
Competitive Landscape:
Some of the Cyber Insurance Market Players are:
- Allianz
- American International Group, Inc.
- Aon plc
- AXA
- AXIS Capital Holdings Limited
- BCS Financial Corporation
- Beazley Group
- Berkshire Hathaway Inc
- Chubb (Switzerland)
- CNA Financial Corporation
- Lloyds of London Ltd
- Lockton Companies, Inc
- Munich Re
- The Chubb Corporation
- The Hanover Insurance, Inc.
- Travelers Indemnity Company
- Zurich Insurance
Market Segmentation:
The Cyber Insurance market is segmented by offering, insurance coverage, Compliance Requirements, insurance type, end user. Based on offering, the market is segmented as solution, services. Solution is sub segmented into Cyber Insurance analytics platform, Disaster recovery and business continuity, Cybersecurity solution. Cybersecurity solution is sub segmented into Cyber risk and vulnerability assessment, Cybersecurity resilience. Service is sub segmented into Consulting/ Advisory, Security awareness training, Others (infrastructure services, implementation, and support and maintenance). The market is segmented by Insurance Coverage: Data breach and Cyber liability. Data breach is sub segmented into Data loss, Denial of service and down-time, Ransomware attacks, Others (third party data, business disruption, and social engineering). Cyber liability is sub segmented into type and source/ Target. Type is sub segmented into Data protection and privacy costs, Non-compliance penalty, Brand and related intellectual property protection, Others (human error, systems failure, controls framework, Inadequate IT security measures, and non-security related IT). Source/ Target is sub segmented into Internal, External. By Compliance Requirements market is segmented into Healthcare Compliance, Financial Services Compliance, GDPR Compliance, Data Privacy Compliance, Other Compliances. By insurance type market is segmented into Packaged and Stand-alone. By end user market is sub segmented into Technology provider and Insurance provider. Technology provider is sub segmented into Insurance companies, Third-party administrators, brokers, and consultancies, Government agencies. Insurance provider is sub segmented into financial services, IT and ITES, Healthcare and life science, Retail and ecommerce, Telecom, Travel, tourism, and hospitality, Others (Education, Manufacturing, Energy and Utilities, and Government).
Based On Insurance Coverage, The Cyber Liability Segment Accounts For A Major Contributor In The Cyber Insurance Market.
Cyber risk insurance, or cyber liability insurance, helps organizations manage the financial impact of cyber-attacks, covering both first-party expenses (such as investigation costs, business losses, and extortion) and third-party claims (including legal proceedings and privacy issues). As cyber threats grow more sophisticated and regulations tighten, businesses are increasingly adopting Cyber Insurance to mitigate potential financial losses. By providing comprehensive coverage, these policies help insurers and businesses minimize the consequences of security breaches. Leading providers in the Cyber Insurance market include Allianz Group, AIG, Chubb, Aon, Zurich, AXA, and Berkshire Hathaway.
The GDPR Compliance Segment Witnessed Growth At A Rapid Rate
GDPR compliance is one of the most important drivers of growth in the Cyber Insurance Market because its strict data protection laws levy huge fines for non-compliance, and companies opt for insurance to cover financial losses. As data breaches become more common, organizations increasingly use cyber insurance to cover breach notification costs, legal expenses, and regulatory fines. Even though GDPR is an EU law, its international reach necessitates that multinational companies comply when processing EU citizen data, which further increases the need for Cyber Insurance protection.
The North American Cyber Insurance Market Holds A Significant Regional Revenue Share
The North American Cyber Insurance Market position is expected to report the highest market share in revenue soon. The growing frequency of cyberattacks and the significant risk of data loss are likely to be attributed to the region's need for cybersecurity insurance. The United States is anticipated to undergo rapid development because of the nation's strict cybersecurity regulations and tight government supervision. Additionally, the nation's significant presence of prominent cyber insurance companies is predicted to support Cyber Insurance Market development. In addition, Asia Pacific is projected to grow at a rapid rate in the global Cyber Insurance market. Due to the growing number of international corporations, particularly in developing nations, the rise in cybercrimes across various economic sectors, and the untapped market potential given by emerging nations like India and China.
Recent Developments:
- In March 2024, HSB, a specialty insurer owned by Munich Re, has lately revealed its intention to offer insurance coverage for clients affected by cyber attacks related to automobiles, as stated in a press statement released by the firm.
- In March 2023, An alliance was formed between F-Secure and Allianz Partners in order to produce an all-encompassing cyber security suite that integrates insurance, protection, and prevention. The suite was provided by F-Secure, Allianz, and their respective partners. The recently formed collaborative alliance provided an all-encompassing assortment of insurance policies pertaining to cyber security and cyber care. It included parental control, browsing and banking protection, protection against virus and malware, and ID monitoring.
Cyber Insurance Market Report Scope:
|
Report Attribute |
Specifications |
|
Market size value in 2024 |
USD 11.0 Billion |
|
Revenue forecast in 2034 |
USD 32.3 Billion |
|
Growth rate CAGR |
CAGR of 11.5% from 2025 to 2034 |
|
Quantitative units |
Representation of revenue in US$ Mn, and CAGR from 2025 to 2034 |
|
Historic Year |
2021 to 2024 |
|
Forecast Year |
2025-2034 |
|
Report coverage |
The forecast of revenue, the position of the company, the competitive market statistics, growth prospects, and trends |
|
Segments covered |
offering, insurance coverage, Compliance Requirements, insurance type, end user |
|
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain;South Korea; Southeast Asia |
|
Competitive Landscape |
Allianz, American International Group, Inc., Aon plc, AXA, Berkshire Hathway Inc, Lloyd’s of London Ltd, Lockton Companies, Inc, Munich Re, The Chubb Corporation, Zurich |
|
Customization scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing and available payment methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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