Cyber Insurance Market to Grow at CAGR of 22.3% through 2032 – Rising Prevalence of Cyber-attacks & Data Breaches
The cyber insurance market size is anticipated to grow from USD 10.74 Billion in 2022 to USD 80.39 Billion in 10 years. The market ought to witness a positive growth rate owing to increasing adoption of cyber insurance plans across the business enterprises. North America region emerged as the most prominent global cyber insurance market, with a 42.0% market revenue share in 2022.
Newark, Oct. 05, 2023 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the global cyber insurance market will grow from USD 10.74 Billion in 2022 to USD 80.39 Billion by 2032. A person or organization can get cyber insurance to minimize their businesses’ financial and reputational risks. The insurance policy transfers the relatable risks to the insurer in trade for a fee on a monthly or quarterly basis. Many enterprises opt for plans regarding cyber insurance to cover additional costs from asset loss or physical destruction. These costs frequently include informing clients about cybercrime and fees for regarding the same. An organization or an individual must provide documents using a review tool approved by the insurance provider or must typically submit to a security audit by the insurance provider to be qualified for coverage. Cybercrimes use phishing, spoofing, and other activities to compromise sensitive data and disrupt information systems. Companies can observe, analyze, report, and oversee cyber risks with cyber insurance plans to protect their sensitive data/information. Cyber insurance protects companies from the potential risks of a cyber-attack or data breach and aids businesses in reducing risk exposure by balancing costs. When a company is hacked and customer/employee data is stolen or lost, these insurance plans are designed to cover the fees, charges, and legal costs associated with cyber-attacks.
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Key Insight of the Cyber Insurance Market
Asia-Pacific region is expected to grow at the highest CAGR during the forecast period.
During the forecast period, Asia-Pacific is expected to grow at the highest CAGR within the global cyber insurance market. The Asia-Pacific region would significantly expand. The exponential adoption of digital technology and related solutions in emerging countries like India has raised the potential for cybercrimes, which can result in reputational and huge financial losses. In the present scenario, cybercrime is rising in developing nations like China, Australia, and India. Government emphasis has been on Asia’s growing economic significance, forcing developing nations to improve their cyber security. This aspect has prompted cyber insurance providers to consider taking the chance by providing policies for risks and underwriting cyber products to improve the security frameworks of various industries and corporate organizations.
The services segment is expected to grow at the highest CAGR during the forecast period.
The component segment is divided into platform and services. The services segment is expected to grow at the highest CAGR during the forecast period. The growth of the services segment is attributed to its critical role in determining and preventing cybercrimes for organizations. Insurance companies offer comprehensive risk management services that help companies find vulnerabilities, assess risks, and develop effective risk management plans. Organizations looking for strong security against cyber threats and optimum data protection strongly value this proactive approach to risk management.
The packaged segment is expected to hold the second largest market share.
The insurance type segment is divided into standalone and packaged. The packaged segment is expected to hold the second largest market share. Contrarily, packaged cyber insurance incorporates cyber protection into existing insurance contracts like general liability, commercial property, or business owners’ policies. Packaged cyber insurance extends the reach of conventional insurance plans to include limited cyber coverage as a component of a larger insurance package, as opposed to being a dedicated standalone policy. Cyber coverage is coupled with other insurance lines in packaged cyber insurance, forming a part of a complete insurance package. This aspect implies that businesses buy a single insurance policy that covers a variety of risks, including cyber hazards.
The SMEs segment is expected to grow at the highest CAGR during the forecast period.
The organization size segment is divided into SMEs and large enterprises. The SMEs segment is expected to augment the market during the forecast period. Large companies have dominated the adoption of cyber insurances, but SMEs are quickly closing the gap. Companies are protected from financial losses by cyber security insurance from cyber incidents, including system hacking, ransom ware extortion, and denial of service. This insurance may be useful for small businesses that store private information online or on their computers. SMEs may have given cyber insurance little thought before now, but in the future, more SMEs will suffer from cyber-attacks and data breaches. This is because these hackers are well aware that most small firms lack the instructions large corporations require to protect their data.
The healthcare segment is expected to grow at the highest CAGR during the forecast period.
The end-user segment is classified into BFSI, healthcare, retail, transportation and others. The healthcare segment is expected to grow at the highest CAGR during the forecast period. Patient privacy and malware that compromise system integrity are two examples of cybersecurity issues in the healthcare sector. Cyber crimes that cause distributed denial of service (DDoS) that stop medical facilities from providing patient care are another. Due to the increased demand for transportation visits, medical supplies, and a hurry to produce and distribute vaccines, cyberattacks on the industry have increased significantly. The market’s demand for cybersecurity insurance will increase as a result.
Report Scope and Segmentation –
|2032 Value Projection||USD 80.39 Billion|
|Market Size in 2022||USD 10.74 Billion|
|No. of Pages||239|
|Report Coverage||Revenue Forecast, Company Profiles, Competitive Landscape, Growth Factors and Latest Trends|
|Segments Covered||Component, Organization Size, insurance Type, Industry|
|Regions Covered||The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.|
|cyber insurance Market Growth Drivers||Rising Incidences of Cybercrimes|
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Advancement in market
• In February 2023: To establish CloudCover CyberCell, a cybersecurity “rent-a-captive” insurance programme, CloudCover collaborated with the insurance brokerage Hylant Global Captive Solutions (Hylant). The program, accessible to organisations, affinity groups, and big businesses, enables users to finance self-insured cyber risks manageably. As a result, businesses can offer cyber insurance at a lower price and with greater coverage, which lowers the potential liability of cyber-attacks and enables larger revenue generation for businesses.
Driver: Rise in Cloud-based Deployment Services
Cloud computing, which dissolves traditional IT boundaries, еnablеs new methodologies, fееds the mobility trend, and facilitates breakthroughs in unified communications, is one of today’s fastest-evolving technologies. Several IT companies and enterprises are turning to new insurance models to address the dangers of holding onto sensitive data in the private cyber security environment. For instance, in 2021, it was reported that Google Cloud Business, Munich Rе AG, and Allianz SE would collaborate to include information about customer cyber risk in insurance products. Cybеr insurance specialists might suggest that insurers get more details about their security directly from their Google Cloud environments. Based on the security of their recreational surroundings, Allianz and Munich Rе will utilize that information to develop customized bicycle insurance products. This factor is propelling the market growth.
Restraint: High Costs
The high costs associated with cyber insurance are the main factor limiting the market growth and development. Insurance companies have been bound to disburse substantial claims due to the ransom ware attacks over the past three to four years. Even if the cyber security insurance companies do not pay the ransom, restoring the infected system will be impossible. The cost of the added services, such as assistance with data recovery after a ransom ware attack, has escalated, and cyber security insurance companies are raising their prices to meet the cost of the additional services. Rising costs have slowed down the adoption of cyber security insurance. Small businesses are more focused on enhancing cyber security than paying insurance premiums.
Opportunity: Utilization of Artificial Intelligence (AI)
Blockchain and artificial intelligence (AI) are the technologies that are expected to expand risk analytics solutions’ capabilities and open up new commercial opportunities. By combining these technologies with risk analytics solutions, surveillance of the major issues and concerns that cyber security insurance organizations confront would be achieved. Modern technology advancements may speed up transactions and settlements, making it simpler for financial institutions and their clients to conduct transactions and eliminating the need for intermediaries. Risk analytics tools have a significant positive impact on risk management, insurance coverage, and claims analysis. Underwriting insurance policies is another key application where risk analytics solutions are becoming increasingly crucial. In the current situation, technology-providing companies offer tools to help researchers make informed decisions.
Some of the major players operating in the cyber insurance market are:
• Travelers Indemnity Company
• American International Group, Inc.
• AXA XL
• Beazley Group
• CNA Financial Corporation
• AXIS Capital Holdings Limited
• BCS Financial Corporation
• Zurich Insurance
• The Hanover Insurance, Inc.
• Arthur J. Gallagher & Co.
Key Segments Cover in the Market:
By Insurance Type:
By Organization Size:
• Large Enterprises
• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)
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About the report:
The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyzes driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes porter’s five forces model, attractiveness analysis, product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.
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