Cyber Insurance Market – Insurance for After Cyber Attack

The rise in digitalization is increasing the number of cyberattacks and legislation to prevent cyber-attacks is leading to the market growth of cybersecurity. The primary factor that is driving the cyber insurance market is the rise in the cybercrimes and wide adoption of the cloud by various end-users across the globe. Consumers are widely adopting cyber insurance policies with the purpose of mitigating the risk which is acting as the key factor of the market growth of the cyber insurance market. Cyber insurance is designed with the purpose to aid the organization to prevent cyber-related security breaches or similar cyber-attacks. It offers coverage related to the first parties and the claims by third parties to mitigate the risk exposure by offsetting the cost involved with the recovery of the internet-based cyber loss. Cyber loss includes loss from network security breaches, indemnification from the lawsuits related to data breaches and others, and loss of privacy among other types of loss. Cyber insurance providers are investing the premium with the purpose to build the portfolio of the financial assets that will be used for future claims. The end-users of cyber insurance include BFSI, Healthcare, Telecommunications, Healthcare, Retail, and Others. The global cyber insurance market is estimated at US$7.056 billion for the year 2020.