MarketsandMarkets' Exclusive Report: Cybersecurity Insurance Market to Reach $33.4 Billion by 2028
The market for cybersecurity insurance is expected to experience rising demand in the future as cyber dangers rise and broader coverage and sector-specific policies become more common.
The market may be shaped by sophisticated risk assessment methodologies, regulatory influence, and cybersecurity partnerships as a result of evolving cyberthreats and growing business awareness.
According to a recent report by MarketsandMarkets, the market for cybersecurity insurance is anticipated to grow from USD 14.4 billion in 2023 to USD 33.4 billion by 2028, at a CAGR of 18.3% during the forecast period.
Organisations are increasingly seeking financial protection against potential losses due to the rise in cyberthreats like data breaches, ransomware, and phishing attacks.
Scope of the Report
The demand for specialised cybersecurity insurance policies and the requirement to reduce the risks connected with "silent cyber" have contributed to the rise in popularity of such policies.
Regarding market expansion, these standalone policies are anticipated to outpace packaged cybersecurity insurance policies. The demand for stand-alone cyber policies is being driven by organisations' growing concern over cyber risks and their desire for specialised coverage just for cyber risk protection. AIG, Lloyd's, and Allianz are just a few of the insurance companies that are embracing affirmative cyber and observing the rise of standalone policies. Compared to packaged cybersecurity insurance, these policies are made to address more complex cyber risks.
For instance, AIG provides its customers with a comprehensive cybersecurity insurance package that consists of both a standalone CyberEdge policy and conventional property and casualty policies. Compared to the packaged endorsement, the CyberEdge policy offers policyholders a wider range of security protection. AXA XL, AIG, Travellers Insurance, Beazley, Zurich, Fairfax, Tokio Marine, Liberty Mutual, and CNA are important market participants that provide stand-alone cybersecurity insurance solutions.
Based on insurance provider end users, healthcare & life sciences is projected to register the highest CAGR during the forecast period.
The healthcare industry faces various challenges, including regulatory fluctuations and the ever-evolving landscape of cyberattacks and breaches. Compliance with privacy and data security regulations such as HIPAA and HITECH necessitate the reliance of healthcare organizations on cybersecurity insurance policies to cover penalty fees. The COVID-19 pandemic has exacerbated cyber threats, with healthcare organizations experiencing increased attacks like ransomware and misinformation campaigns. Cybersecurity insurance is a crucial safeguard for healthcare providers, offering financial protection against cybercrimes, ransomware, data breaches, and other cybersecurity incidents.
Based on region, Asia Pacific is projected to register the highest CAGR during the forecast period.
Asia Pacific, an emerging economy, is projected to achieve the highest CAGR in the Cybersecurity Insurance Market during the forecast period. Countries in the Asia Pacific region, such as China, Japan, ANZ, and Singapore, are highly concerned about rising security spending due to increasing cyber threats. With its strong government regulations and technological advancements, Asia Pacific presents promising growth opportunities for the Cybersecurity Insurance Market. Insecure interfaces, data breaches, and data losses are top cybersecurity risks in the region, fueled by rapid connectivity and digital transformation. Asia Pacific faces an 80% higher risk of cyberattacks than other regions. Increasing regulatory measures are expected to drive the demand for cybersecurity insurance. Zurich Insurance predicts significant market growth in APAC, with leading players like AIG, Allianz, Chubb, and Zurich operating in the region.
Top Key Companies in Cybersecurity Insurance Market:
The major vendors covered in the Cybersecurity Insurance Market include BitSight (US), Prevalent (US), RedSeal (US), SecurityScorecard (US), Cyber Indemnity Solutions (Australia), Cisco (US), UpGuard (US), Microsoft (US), Check Point (US), AttackIQ (US), SentinelOne (US), Broadcom (US), Accenture (Ireland), Cylance (US), FireEye (US), CyberArk (US), CYE (Israel), SecurIT360 (US), and Founder Shield (US). The insurance vendors covered in the Cybersecurity Insurance Market are Allianz (Germany), AIG (US), Aon (UK), Arthur J. Gallagher & Co (US), Travelers Insurance (US), AXA XL (US), AXIS Capital (Bermuda), Beazley (UK), Chubb (Switzerland), CNA Financial (US), Fairfax Financial (Canada), Liberty Mutual (US), Lloyd's of London (UK), Lockton (US), Munich Re Group (Germany), and Sompo International (Bermuda). The startup vendors covered in the Cybersecurity Insurance Market are At-Bay (US), Cybernance (US), CyberCube (US), Coalition (US), Arceo.ai (US), Kovrr (Israel), Sayata Labs (Israel), Zeguro (US), RiskSense (US), SafeBreach (US), and Cronus Cyber Technologies (Israel).
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