Canada Cyber Insurance Market

Canada Cyber Insurance Market Overview:

The Canada cyber insurance market size reached USD 284.00 Million in 2024. The market is projected to reach USD 1,475.11 Million by 2033, exhibiting a growth rate (CAGR) of 17.91% during 2025-2033. The market is growing due to increased cyber threats across sectors and rising awareness among businesses about digital risk protection. In addition, integrated coverage with security tools and demand for AI-related risk solutions continue to support Canada cyber insurance market share across small and large enterprises.

Canada Cyber Insurance Market Trends:

Stronger focus on bundled security solutions

One visible trend supporting Canada cyber insurance market growth is the integration of cyber protection tools within insurance offerings. Companies are no longer offering just coverage—they are providing built-in prevention services to reduce risk before claims arise. This approach reflects the increasing demand for proactive support among small and medium-sized businesses that often lack internal cyber teams. The shift is being driven by rising threats and growing awareness among businesses that insurance alone is not enough without the tools to detect, prevent, and respond to incidents effectively. For instance, in May 2025, BOXX Insurance launched Cyberboxx Assist in Canada, bundling cyber tools like vCISO, identity monitoring, and threat intelligence with existing policies. These features were made available within existing Business and Home policies, helping small firms gain access to advanced cyber capabilities that were previously unaffordable. The offering also included compliance tools, policy templates, and 24/7 cyber support, making it more than just an insurance policy it became an operational risk partner. The impact has been significant, as it led to broader coverage, improved loss prevention, and enhanced insurer-client collaboration. This type of bundled model is expected to grow across the market, supporting long-term resilience and reducing claim volumes for insurers over time.

Rising demand for Gen AI-specific coverage

The rapid adoption of Generative AI has created a new layer of cyber exposures that traditional insurance policies do not fully address. Businesses developing their own AI tools face technical, legal, and operational risks, including compromised model performance, copyright infringements, and future regulatory fines. The growing complexity of these risks has pushed insurers to rethink product structures to remain relevant. Clients expect cover that protects not just their networks, but also the data, systems, and compliance obligations tied to AI tools. Aligned with this trend, in October 2024, AXA XL introduced new cyber insurance coverage in Canada for risks tied to Generative AI, including data poisoning, usage rights breaches, and AI regulation violations. The offering was made available as an endorsement to existing CyberRiskConnect policies across Canada and other global markets. This development marked a clear industry response to the unique needs of AI adopters. With AI-related cyber incidents increasing, having insurance solutions tailored to these challenges is helping companies move forward with confidence. It also shows that the Canadian cyber insurance market is becoming advanced, adapting quickly to the technological landscape. This trend is likely to influence future product development, especially as regulations like the EU AI Act become more widely enforced.

Canada Cyber Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional level for 2025-2033. Our report has categorized the market based on component, insurance type, organization size, and end-use industry.

Component Insights:

• Solution
• Services

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.

Insurance Type Insights:

• Packaged
• Stand-alone

The report has provided a detailed breakup and analysis of the market based on the insurance type. This includes packaged and stand-alone.

Organization Size Insights:

• Small and Medium Enterprises
• Large Enterprises

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes small and medium enterprises and large enterprises.

End-Use Industry Insights:

• BFSI
• Healthcare
• IT and Telecom
• Retail
• Others

The report has provided a detailed breakup and analysis of the market based on the end-use industry. This includes BFSI, healthcare, IT and telecom, retail, and others.

Regional Insights:

• Ontario
• Quebec
• Alberta
• British Columbia
• Others

The report has also Provided a comprehensive analysis of all the major regional markets, which include Ontario, Quebec, Alberta, British Columbia, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Canada Cyber Insurance Market News:

• May 2025: AXIS Capital launched the ACTM policy in Canada, offering combined cyber and professional liability coverage for firms earning up to USD 2 Billion. This expanded access to tailored cyber insurance, enhancing market capacity and addressing rising digital risk demands across diverse industries.
• April 2025: CFC launched a new insurance policy for Canadian contractors, combining E&O, cyber, pollution, and professional liability cover. The inclusion of proactive cyber protection and threat intelligence expanded cyber insurance access, addressing coverage gaps and strengthening risk management for contractors nationwide.

Canada Cyber Insurance Market Report Coverage:

Key Questions Answered in This Report:

• How has the Canada cyber insurance market performed so far and how will it perform in the coming years?
• What is the breakup of the Canada cyber insurance market on the basis of component?
• What is the breakup of the Canada cyber insurance market on the basis of insurance type?
• What is the breakup of the Canada cyber insurance market on the basis of organization size?
• What is the breakup of the Canada cyber insurance market on the basis of end-use industry?
• What is the breakup of the Canada cyber insurance market on the basis of region?
• What are the various stages in the value chain of the Canada cyber insurance market? 
• What are the key driving factors and challenges in the Canada cyber insurance market?
• What is the structure of the Canada cyber insurance market and who are the key players?
• What is the degree of competition in the Canada cyber insurance market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Canada cyber insurance market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Canada cyber insurance market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Canada cyber insurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.