Global Cyber Insurance Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Enterprise Size (Small, Medium, Large), By End-User Industry (BFSI, Healthcare, Telecommunications, Retail, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Jul 2022 Report Code: KSI061613513 Pages: 145

The cyber insurance market is projected to grow at a CAGR of 16.40% during the forecast period to reach US$20.432 billion by 2027, from US$7.056 billion in 2020.

Introduction

Cyber insurance (also known as cyber risk or cyber liability insurance) is a type of coverage designed to safeguard one's company from cyber-security threats, including security breaches and ransomware attacks. A company is responsible for its cyber security but obtaining the correct insurance will ensure that they are not alone in the occurrence of a cyber assault. Cyber liability insurance will give critical assistance in keeping the company viable.

Market Trend:

Following the COVID-19 pandemic, enterprises saw a rise in cases of cyber-attacks and data breaches. This led to an increase in the demand for cyber insurance companies since organizations have started to understand the importance of data security. To adopt a proper cyber insurance policy, it is essential to strategize the goals and functions of the policy the organization will be adopting. The US currently occupies a major segment of the cyber insurance market.

Growth Factors

  • Increase in cyber attacks

With the growing adoption of cloud-based technology among companies, cybercrime cases have increased significantly. Data breach cases have also increased consequently in the last few years.

According to IBM, the average overall cost of a data breach increased from US$3.86 million to US$4.24 million, the highest combined cost in the report's history. In breaches where remote work was a factor in triggering the breach, the average cost was US$1.07 million greater than in breaches where remote work was not a factor. IBM also reported that the average cost of a ransomware assault is reported to be US$4.62 million, which is more than the average cost of a data breach (US$4.24 million).

The IC3 reported in March 2022 that it received over 20,000 Business Email Compromise (BEC) complaints last year, with estimated adjusted losses amounting to US$ 2.4 billion. According to the FBI, Business Email Compromise (BEC) breaches have already resulted in global losses of at least $26 billion since 2016. The cyber insurance industry is anticipated to expand significantly due to the increasing number of cybercrimes.

  • Healthcare to become a major player

The healthcare sector has been facing constant strain since the start of the pandemic. Healthcare workers find it difficult to cope with the increasing number of cases. According to IBM, the average overall cost of a healthcare data breach grew by 29.5 percent, from $7.13 million in 2020 to $9.23 million in 2021. IBM also found that the United States had the most expensive data breaches at $9.05 million per incident, with the Middle East at $6.93 million and Canada at $5.4 million.

At the time of publishing, the Office for Civil Rights (OCR) had identified approximately 550 covered companies with a data breach in 2021. As a result of these breaches, almost 40 million people's Protected Health Information (PHI) was exposed. According to Health News Florida, a breach on the Florida KidCare health plan's website revealed the personal information of about 3.5 million people who registered for coverage or were enrolled in the plan between 2013 and 2020. Medicaid, MediKids, Florida Healthy Kids, and the Children's Medical Services program are all part of Florida KidCare.

Another instance of a healthcare data breach was reported in May 2021 in the 20/20 Eye Care Network Inc. The company identified unusual behavior in its Amazon Web Services environment, which delivers eye and ear care services and management. Following an examination, it was discovered that material, maybe including personal information, had been erased. Following the breach, the company faced a lawsuit. Such instances signify the importance of cyber security and how cyber insurance can help safeguard the data from these organizations. Hence, cyber insurance is expected to rise in the healthcare sector.

Restraint

  • Lack of focus on SMEs

With the increasing cost of cyber insurance services, small and medium enterprises find it challenging to cope with the market. This has left SMEs vulnerable to cyberattacks and breaches, which has resulted in them being easy prey for cyber attackers. According to a survey by Digital.com, 51% of small businesses do not have the necessary measures to safeguard their resources in case of a cyberattack. 19% of the surveyed businesses have reported that cyber insurance measures were too expensive for small businesses.

Moreover, most major corporations have the financial resources to address the problem if it arises. Tiny enterprises, on the other hand, lack the financial capacity to pay such a large expenditure, which means that a cybersecurity assault may shut down a small company forever. Further, the survey revealed that over a third of respondents are unconcerned about their online security, believing their company is "too little" to be a target. Factors like these are expected to decrease the market growth of the cyber insurance market.

Key Developments

  • May 2022: Two brand-new digital insurance solutions were announced by Embroker: Cyber Insurance and Crime Insurance. They offer two new standalone plans, to help businesses stay protected against new and emerging dangers as part of our commitment to make business insurance radically easy.
  • April 2022: Elpha secure, along with Socotra, has introduced a complete cyber insurance coverage that covers business disruption, financial and data losses (including ransomware), and third-party cybercrime litigation.
  • December 2021: Together with Accenture and Vodafone Business, Generali has developed a suite of cyber insurance services to assist corporate and SME clients in identifying, responding to, and recovering from cybersecurity risks and events. The effort will help Generali clients improve their capacity to ensure a rapid return to normal operations and to reduce implications for both their own organization and third parties. It includes cyber risk assessments, phishing simulations, and learning programs.

Impact of the COVID-19

Despite the major industrial disruptions and economic decline during the pandemic, the cyber insurance market had a positive impact. Owing to the rapid increase in cyber fraud, hacking and cyber attack cases, the demand for the cyber insurance market increased. The wide array of services and safeguarding techniques offered by cyber insurance companies were utilized by consumers to safeguard their electronic data. Additionally, with the improvements in privacy policies and data security, the market demand is anticipated to increase substantially.

Global Cyber Insurance Market Scope:

Report Metric Details
 Market size value in 2020  US$7.056 billion
 Market size value in 2027  US$20.432 billion
 Growth Rate  CAGR of 16.40% from 2020 to 2027
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments covered  Enterprise Type, End-User Industry, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered Allianz, Lloyd’s, American International Group, Inc, AXA SA, Zurich Insurance Group, Inc., Aon plc, American International Group, Inc., Tokio Marine HCC
 Customization scope  Free report customization with purchase

 

Key Market Segments

  • By Enterprise Type
    • Small
    • Medium
    • Large
  • By End-User Industry
    • BFSI
    • Healthcare
    • Telecommunications
    • Retail
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      •  Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • South Africa
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What are the growth prospects for the cyber insurance market?
A1. The cyber insurance market is projected to grow at a CAGR of 16.40% during the forecast period.


Q2. What will be the cyber insurance market size by 2027?
A2. The global cyber insurance market is projected to reach a market size of US$20.432 billion by 2027.


Q3. What is the size of the global cyber insurance market?
A3. Cyber Insurance Market was valued at US$7.056 billion in 2020. 


Q4. How is the global cyber insurance market segmented?
A4. The cyber insurance market has been segmented by enterprise size, end-user industry, and geography. 


Q5. What factors are anticipated to drive the cyber insurance market growth?
A5. The cyber insurance industry is anticipated to expand significantly in response to the increasing number of cybercrimes.

1. Introduction
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. Threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis

5.  CYBER INSURANCE MARKET, BY ENTERPRISE SIZE
5.1. Introduction
5.2. Small
5.3. Medium 
5.4. Large

6.  CYBER INSURANCE MARKET, BY END-USER INDUSTRY
6.1. Introduction
6.2. BFSI
6.3. Healthcare
6.4. Telecommunications
6.5. Retail
6.6. Others

7.  CYBER INSURANCE MARKET, BY Geography
7.1. Introduction
7.2. North America
7.2.1. USA
7.2.2. Canada
7.2.3. Mexico
7.3. South America
7.3.1. Brazil
7.3.2. Argentina
7.3.3. Others
7.4. Europe
7.4.1. Germany
7.4.2. France
7.4.3. United Kingdom
7.4.4. Spain
7.4.5. Italy
7.4.6. Others
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.5.2. Israel
7.5.3. South Africa
7.5.4. Others
7.6. Asia Pacific
7.6.1. China
7.6.2. Japan
7.6.3. India
7.6.4. South Korea
7.6.5. Taiwan
7.6.6. Thailand
7.6.7. Indonesia
7.6.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrative
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES
9.1. Allianz
9.2. Lloyd’s
9.3. American International Group, Inc
9.4. AXA SA
9.5. Zurich Insurance Group, Inc.
9.6. Aon plc
9.7. American International Group, Inc.
9.8. Tokio Marine HCC
9.9. Chubb
9.10. Lockton Companies
9.11. The Travelers Indemnity Company

Allianz

Lloyd’s

American International Group, Inc

AXA SA

Zurich Insurance Group, Inc.

Aon plc

American International Group, Inc.

Tokio Marine HCC

Chubb

Lockton Companies

The Travelers Indemnity Company

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