The latest report by IMARC Group, titled “Cyber Insurance Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028,” finds that the global cyber insurance market is expected to grow at a CAGR of 22.39% during 2023-2028. Cyber insurance is an insurance product designed to protect businesses against the potentially devastating effects of cybercrimes, including malware, ransomware, and distributed denial-of-service (DDoS) attacks. It prevents the compromise of network and sensitive data such as social security numbers, credit card numbers, account numbers, drivers’ license numbers, and health records by covering the liabilities of the business. Cyber-attacks harm businesses by disrupting businesses, resulting in regulatory fines, legal penalties and attorney fees, loss of intellectual property, and reputational damage. As a result, cyber insurance has widely been adopted by organizations to offer coverage for physical damage to hardware and business income loss. It also effectively reduces the damage caused by a breach and complements the overall cyber risk management plan.
Global Cyber Insurance Market Trends:
The market is primarily driven by the rising importance of cyber security across the globe. Besides this, the rising awareness about business interruption (BI) cyber risks, coupled with the growing number of mandatory legislation for data security among different end-users, such as banking and healthcare, are propelling the adoption of cyber insurance. Nowadays, government regulatory bodies and law enforcement agencies are taking numerous initiatives to tighten data security and protection. For instance, a US state assembly has introduced a bill to make cybersecurity insurance mandatory to regulate and protect the personal information of the citizens. Moreover, various data privacy laws, such as personally identifiable information (PII), European Union (EU) General Data Protection Regulation (GDPR), and the United States health insurance portability and accountability act (HIPPA), are influencing the demand for cyber insurance across the globe. In addition to this, increasing digitization and the development of AI and blockchain technology are also opening new growth avenues for the market.
- Based on the component, the market has been segmented into solutions and services.
- On the basis of the insurance type, the market has been classified into packaged and stand-alone.
- The market has been categorized based on the organization size into small and medium, and large enterprises.
- On the basis of the end-use industry, the market has been segregated into BFSI, healthcare, IT and telecom, retail, and others.
- Region-wise, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and the Middle East and Africa.
- The competitive landscape of the market has been examined, with some of the key players being Allianz Group, American International Group Inc., AON Plc, AXA XL, Berkshire Hathaway Inc., Chubb Limited (ACE Limited), Lockton Companies Inc., Munich ReGroup or Munich Reinsurance Company, Lloyd's of London, and Zurich Insurance Company Limited.
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