Cybersecurity Insurance Market - By Component (Solution, Services), By Enterprise Size (Large Enterprise, SMEs), By Insurance Type (Packaged, Standalone), By Coverage Type (First-Party, Liability Coverage), By End Use, & Forecast 2024 – 2032
Published Date: April - 2025 | Publisher: MRA | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationCybersecurity Insurance Market Size
Hi there! So, the cybersecurity insurance market was valued at approximately $16.4 billion in 2023, and it's likely to continue expanding by over 20% per annum until 2032. Governments are starting to take seriously ensuring that businesses comply with cybersecurity regulations and guidelines. And then there are regulations such as the GDPR (which is all about safeguarding individuals' personal information) becoming more stringent globally. The GDPR, one of the most stringent data protection regulations available, is forcing businesses to go the extra mile with the way they gather, use, and store personal information. It also provides individuals with greater control over their data, such as the right to view it, correct any errors, or even erase it. To comply with these regulations and safeguard themselves against any issues, businesses might have to purchase cybersecurity insurance. This is positive news for the market since it implies that more individuals will be purchasing insurance to remain compliant and mitigate risks.
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A significant increase in cybersecurity breaches and related expenses may propel the cybersecurity insurance industry up to 2032. Cybersecurity breaches can lead to huge financial losses, such as data recovery, business disruption, legal fees, and reputation loss. In accordance with a report by Comparitech, 108 standalone ransomware attacks hit 2,302 healthcare organizations in 2021, compromising 19.76 million patient records. These attacks resulted in medical organizations losing an estimated USD 7.8 billion in downtime alone. Cyber insurance offers financial safeguarding against such possible losses, further boosting its appeal among organizations.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| Cybersecurity Insurance Market Size in 2023 | USD 16.4 Billion |
| Forecast Period | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR | 20.9% |
| 2032 Value Projection | USD 88.8 Billion |
| Historical Data for | 2018 – 2023 |
| No. of Pages | 300 |
| Tables, Charts & Figures | 355 |
| Segments covered | Component, Enterprise Size, Investment Type, Coverage Type, End use |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
Nonetheless, certain companies may be slow to buy cyber insurance because they are wary of exposing sensitive information to insurance firms and incurring legal liabilities in the face of a cyber attack. Furthermore, the lack of standardization among cyber insurance policies is likely to cause confusion and make it difficult to compare various products. This non-standardization makes it hard for companies to choose the best policy for their purposes, resulting in reduced market growth.
COVID-19 Impact
The COVID-19 had a significant influence on the cybersecurity insurance market as a result of increased remote work and digitalization amid the pandemic. The sudden adoption of remote work boosted cyber exposure, which contributed to an escalation of cyberattacks. Harvard Business Review indicates that 2020 saw a notable increase in the number of cyber-attacks and ransom payments, with the volume of money paid by companies to hackers increasing by 300%.
Consequently, most organizations looked to strengthen their cybersecurity controls and invest in cyber insurance to cushion themselves against prospective financial losses through breaches. Nonetheless, the increased intensity and frequency of cyber incidents also created pressure for insurance firms, with some re-pricing their coverage conditions and premiums to counter the rising risk. Incidences of cyberattacks on health facilities and phishing scams during the pandemic further reinforced the role of cybersecurity insurance as a tool against pandemic-related cyber threats.
Cybersecurity Insurance Market Trends
Insurance firms are always innovating and creating new products to address the changing needs of businesses. For example, certain insurers now provide cyber risk management services alongside standard insurance policies. These services can assist business in accessing their cyber risk, building and deploying security controls, and reacting to cyberattacks.
Similarly, Parametric cyber insurance settles on the basis of occurrence of a given event, for example, data breach or denial-of-service attack. This contrasts with conventional cyber insurance, which settles on the basis of actual financial losses that the insurer sustains. Such innovations have spurred higher competition and greater variety in the cybersecurity insurance market, thus resulting in a strong growth outlook for the cybersecurity insurance market.
Cybersecurity Insurance Market Analysis
Discover more about the most important segments defining this market
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Based on how large they are, the market can be segmented into large businesses and small and medium-sized businesses (SMEs). In 2023, the large business segment had over 61% of the entire market. Large businesses are purchasing more cybersecurity insurance because there are increasing cyber threats, such as more frequent and smarter cyber attacks. Data breaches, ransomware attacks, and other cyber-attacks expose large businesses to losing a significant amount of money, and thus insurance is necessary for compensating for any losses that may occur. Regulations that businesses must adhere to and the necessity of managing risks with third-party firms also compel large businesses to purchase cybersecurity insurance. The insurance market is finding new ways to accomplish things, and increasingly, people are learning about cyber risks. This is also encouraging large companies to purchase more cybersecurity insurance.
Find out more about the major segments driving this market
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When applying for cybersecurity insurance, there are various groups depending on what they dobanking and finance, tech and communication, healthcare, manufacturing things, selling things, etc. Banks and finance companies constituted 26% of the total market of cybersecurity insurance in 2023. Since they process a lot of significant transactions and personal data, firms in this category are usually the target of cybercriminals seeking financial gain or data theft. For example, the Equifax data breach in 2017 demonstrated how much money can be lost and how a firm's reputation can be ruined by cyberattacks. Therefore, more banks, insurance firms, and financial institutions are purchasing cybersecurity insurance in order to lower probable losses, maintain customers' confidence, and keep their businesses afloat against cyberattacks.
Looking for region specific data?
Hey there! You know how important cybersecurity is, right? Well, it's a big deal in North America. In 2023, businesses in North America spent a whopping 32% of their cybersecurity insurance budgets on protecting themselves. And that number is only going to keep growing until 2032! Why? Because North America is all about technology. We've got a lot of businesses that rely on computers and the internet to get stuff done. And with all those gadgets comes a whole lot of chances for hackers to do their thing. Just think about what happened with the SolarWinds attack a few years ago. That mess cost a lot of businesses a lot of money. It's like, you can't trust anyone online these days! So, what are businesses doing? They're getting smart. They're buying cybersecurity insurance to protect themselves from the big, bad cyber world. This way, if they get hacked or someone steals their data, they've got a backup plan to keep their business up and running.
Cybersecurity Insurance Market Share
Major players operating in the cybersecurity insurance industry are
- American International Group Inc.
- Aon PLC
- Axis Capital
- BitSight
- Corporation
- Liberty Mutual
- Lockton Companies Inc.
- Munich RE
- The Chubb Corporation
- The Hanover Insurance Inc.
- Zurich Insurance Co. Ltd.
These companies focus on strategic partnerships and product launches to increase their market share and provide insurance cover to a wide range of organizations.
Cybersecurity Insurance Industry News
- In April 2023, Chubb announced that it would be expanding its cyber insurance coverage to include ransomware attacks. This expansion is in response to the growing number of ransomware attacks that have been targeting businesses in recent years.
The cybersecurity insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments
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Market, By Component
- Solution
- Service
Market, By Enterprise Size
- Large enterprise
- SMEs
Market, By Insurance Type
- Packaged
- Standalone
Market, By Coverage Type
- First-party
- Liability coverage
Market, By End Use
- IT & telecom
- BFSI
- Manufacturing
- Healthcare
- Retail
- Others
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Latin America
- Brazil
- Mexico
- MEA
- South Africa
- UAE
- Saudi Arabia
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