The report titled “Cyber Insurance Market By Component, Coverage Type, Third-Party Coverage, Organisation Size, Vertical – Forecast till 2030,” predicts a compound annual growth rate (CAGR) of 26.57% during the forecast period of 2020 to 2030.
The cyber insurance market is expected to witness substantial growth in the coming years, driven by the increasing prevalence of cyberattacks and data breaches targeting enterprises.
The proliferation of the Internet has brought about various risks associated with online activities, prompting businesses to seek financial protection through cyber insurance. The market for cyber insurance has experienced significant expansion due to the growing awareness of cyber risks and their potential implications on public safety, economic prosperity, and government cybersecurity.
Data shows that cyber insurance enables organisations to mitigate financial risks arising from threats such as ransomware and malware that can compromise their operations. With the rising frequency and sophistication of cyberattacks, businesses are increasingly recognising the need for cyber risk insurance products to safeguard their network security and privacy.
Competition within the cyber insurance market is high
The cyber insurance market is highly competitive, with global players as well as local participants. Tier-1 and tier-2 players have a global reach, offering diverse product portfolios. These players emphasize research and development activities and strategic expansion through partnerships and product launches to strengthen their market presence.
Meanwhile, the Asia-Pacific region is witnessing substantial growth, fuelled by an increasing incidence of ransomware attacks and the adoption of cyber insurance solutions to combat cybercrimes.
The report highlights key players in the cyber insurance market, including:
Tata Consultancy Services Limited
Guy Carpenter and Company LLC
At-Bay Inc.
Lloyds Bank PLC
AXA SA
Cisco Systems Inc.
Chubb Limited
Apple Inc.
American International Group Inc.
Zurich Insurance Group
Beazley Group PLC
Lockton Companies
AON Plc.
Banks and Healthcare are the industries facing the greatest cyber risks
According to the data, industries, including banking, healthcare, and others, are becoming more aware of business interruption (BI) cyber risks and facing increased regulatory requirements for data protection. This has led to a surge in the demand for cyber liability insurance, presenting lucrative opportunities for the market.
Additionally, the remote work trend has driven the need for Enterprise Virtual Private Network (VPN) servers as organizations strive to secure their networks while employees work from home.
Cyber criminals have capitalised on the remote working trend
MRFR’s research shows that the pandemic, coupled with privacy concerns and sophisticated cyber exploits, has contributed to the segment’s growth, leading to a surge in data breaches.
Cybercriminals are capitalising on these opportunities by impersonating brands and tricking employees through techniques such as mail spam, ransomware attacks, and phishing attempts. As a result, businesses are seeking comprehensive cyber coverage through insurance policies to protect themselves in the event of an attack or breach. Cyber insurance policies offer a wide range of coverage options to address the current threat landscape, ensuring the security and privacy of company networks.
Standalone insurance has largest market share
The report segments the cyber insurance market based on types, components, enterprise size, coverage types, end-users, and regions. Standalone insurance holds the largest market share due to its comprehensive coverage policies. However, tailored insurance is experiencing higher growth due to the availability of customized solutions, particularly in the BFSI, healthcare, and IT & telecom sectors.
The services segment dominates the component category, driven by the increasing demand for advisory, maintenance, and upgrade services from small and medium businesses. The global pandemic, coupled with privacy concerns and sophisticated cyber exploits, has contributed to the segment’s growth, leading to a surge in data breaches.
Large enterprises currently dominate the market, as they make significant investments in risk management solutions to protect customer and company data. However, the SME segment is witnessing substantial growth, as small firms are increasingly investing in cybersecurity insurance solutions.
Liability/third-party segment is being driven by business interruption
The liability/third-party coverage segment holds the largest market share in the coverage type category, as it offers various risk management programs. The demand for liability coverage insurance is driven by its benefits in business interruption loss coverage, data breach coverage, forensic aid in defending against cyber extortion, and coverage beyond standard liability policies.
The report added that the BFSI sector occupies a significant share of the end-user segment, as it faces a growing number of cyber hazards due to the increasing adoption of digitalisation, mobile apps, and Internet banking.
Geographically, North America leads the global cyber insurance market, primarily due to the rising number of cyberattacks and stringent cybersecurity measures in the US, it concluded.
Source: Global Newswire
