Cyber Insurance Market Research Report: By Policy (Data Breach, Identity Theft, Malware Attack, Phishing, Email Spoofing), Product Type (Standalone, Integrated), Service (Insurance, Claims, Risk Consulting), Enterprise (Large Enterprises, SME), End User (BFSI, IT & Telecom, Healthcare, Government, Retail and E-Commerce, Manufacturing) - Global Competition Analysis and Revenue Forecast to 2030

  • Published: June 2020
  • Report Code: IM11300
  • Available Format: PDF
  • Pages: 249

Cyber Insurance Market Overview

The global cyber insurance market generated revenue of $5,573.2 million in 2019, and it is projected to witness a CAGR of 26.3% during the forecast period (2020–2030). Growing digitalization, rising number of cyberattacks, increasing legislations with respect to cyber security, and growing adoption of cyber insurance policies as a risk mitigation strategy by companies are the key factors driving the cyber insurance industry.

Cyber Insurance Market

Segmentation Analysis

Data Breach Policy Witnessed the Highest Adoption in the Market

In 2019, the data breach category accounted for the largest market size in the cyber insurance market, on the basis of policy. Data breaches have risen exponentially in recent years, with organizations becoming more reliant on cloud computing, digital data, and workforce mobility. Sensitive data of customers and organizations is generally stored on enterprise databases, local machines, and cloud servers, which, sometimes, are susceptible to data breaches. In the first half of 2019, more than 3,800 data breach cases were reported, which exposed around 4.1 billion digital records across the world.

Integrated Category Expected to Witness Faster Growth during Forecast Period

During the forecast period, the integrated category is expected to witness faster growth under market segmentation by product type, in the cyber insurance market. Integrated policies are increasingly being purchased by SMEs to cover data breach losses, cyber extortion, data replacement and restoration expenses, and business interruption costs. Moreover, with the rise in the number of SMEs globally, the demand for integrated cyber insurance policies is also projected to grow.

Insurance Was the Largest Service Category in the Market

In 2019, the insurance category accounted for the largest share in the cyber insurance market, on the basis of service. On account of the increasing incidence of cyberattacks, such as malware attacks, data breaches, phishing, email spoofing, and ransomware, and due to the fact that the most fateful consequences of such cyberattacks are the incursion of financial loss and the damage to brand identity, the demand for insurance services is on the rise. Thus, to reduce financial losses, companies are increasingly opting for cyber insurance policies to get coverage against any cyberattacks or data breaches.

SMEs Expected to Drive Higher Demand in the Market during Forecast Period

During the forecast period, the SMEs category is expected to witness faster growth in demand for solutions, in the cyber insurance market under the enterprise segmentation. SMEs lack the required security infrastructure and, therefore, face an increased risk of cybersecurity threats. In the past, authorizing cyber insurance for SMEs was a difficult task, as these organizations lacked accessibility and affordability. However, digital-first insurance providers have considerably reduced distribution costs, thereby enabling faster adoption of cyber insurance solutions among these organizations.

BFSI is the Largest End-User Category in the Industry

The BFSI category held the largest share in the cyber insurance market in 2019 and is expected to dominate the market in the near future as well. BSFI companies have substantially transformed themselves technologically to meet the evolving needs of customers. Banks are increasingly shifting their data on the cloud on account of its benefits, which, however, is resulting in more chances of cyberattacks. Such factors are resulting in the larger adoption of cyber insurance policies by BFSI companies for improved cybersecurity.

Geographical Outlook

North America Held the Largest Share in the Market

During the historical period (2014–2019), North America led the cyber insurance market, globally. This can be ascribed to the presence of prominent service providers, such as American International Group Inc., Chubb Group Holdings Inc., and Lockton Incorporated, in the region. Furthermore, the increased focus on the legal framework pertaining to cybersecurity and the development of related government policies are the factors helping the market advance in the region.

Asia-Pacific (APAC) Expected to be the Fastest-Growing Regional Market

During the forecast period, the market is projected to attain the fastest growth in APAC. Several developing economies in the region, including China and India, are facing cybersecurity challenges, such as cloud security vulnerabilities and cyberattacks on blockchain systems. Owing to this, the governments of these economies are taking strategic measures, such as the implementation of policies to enhance cybersecurity and the launch of initiatives to spread awareness regarding cyberattacks. Moreover, rising awareness about cyberattacks has encouraged cyber insurance market players to potentially take advantage of the opportunity by offering insurance policies to cover cyber risks to further support cybersecurity strategies of businesses.

Cyber Insurance Market

Due to the COVID-19 crisis, several employees of organizations operating across the world are operating remotely. Owing to this, enterprise virtual private network (VPN) servers are gaining prominence among companies, with their availability and security being a major focus area. However, there is a likelihood that a company’s unpreparedness can eventually lead to misconfiguration of security in VPNs, which may further result in the exposure of sensitive data or information over the internet. This may also result in the exposure of the operating devices to denial of service (DoS) attacks. Thus, the increased risk of cyberattacks, with organizations opting for the work-from-home model in the wake of the pandemic, is positively shaping the cyber insurance market outlook across all regions.

Trends & Market Drivers

Rising Cyber Insurance Demand in Healthcare Sector is the Key Market Trend

With cyberattacks leading to both financial losses and data security compromise, the healthcare sector, which is fast transforming itself technologically, is also being majorly exposed to such risks. In recent years, the healthcare sector has become a key target for cybercriminals, as the stolen protected health information (PHI) is worth hundreds, even thousands of dollars. For cyberattackers, PHI is valuable, as they can use that data to target victims with scams and frauds. Such factors are resulting in the adoption of cyber insurance services in the healthcare sector.

Cyber Insurance Market

Increasing Number of Cyberattacks Highly Impacting the Market

The incidence of cyberattacks across the world has increased manifold, with a high number of cases being reported with respect to the breaching of one’s personal data, such as email addresses, social security numbers, credit card numbers, passwords, and other sensitive information. From January 2019 till April 2020, around 8 billion records, which included credit card numbers, phone numbers, home addresses, and other types of highly confidential data, had been exposed in data breaches. Thus, the rising number of cyberattacks is resulting in the increasing growth of the cyber insurance market globally.

Rise in Legislations Concerning Cybersecurity Highly Impacting the Market

With the rise in digitalization and easy connectivity, cyber threats and vulnerabilities have also emerged, leaving room for security risks and their adverse impact on organizations. In view of this, governments in various countries are mandating the implementation of cyber security measures, in order to mitigate the growing risks associated with cyberattacks. As cybersecurity-related legislations are becoming more stringent across the world, substantially higher fines for data breaches and the adoption of cyber security policies are being focused upon, which, in turn, is benefitting the growth of the cyber insurance market.

Cyber Insurance Market Report Coverage
Report Attribute Details
Historical Years 2014-2019
Forecast Years 2020-2030
Base Year (2019) Market Size $5,573.2 million
Forecast Period (2020-2030) CAGR 26.3%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategical Developments, Product Benchmarking, Company Profiling
Market Size by Segments By Policy, By Product Type, By Service, By Enterprise, By End User, By Region
Market Size of Geographies U.S., Canada, Germany, France, Italy, U.K., Spain, Japan, China, India, Australia, South Korea, Brazil, Mexico, Turkey, Saudi Arabia, U.A.E., South Africa
Market Players American International Group Inc. (AIG), Chubb Limited, Zurich Insurance Group AG, Berkshire Hathaway Inc., Munich Re Group, Lockton Companies Inc., Aon Plc, Allianz Group, AXA XL, Arthur J. Gallagher & Co., The Travelers Companies Inc., Beazley Plc, Fairfax Financial Holdings Limited, Axis Capital Holdings Limited, Liberty Mutual Holding Inc.
Secondary Sources and References (Partial List) Information Security Research Association (ISRA), Information Systems Audit and Control Association (ISACA), International Association of Insurance Supervisors (IAIS), International Association of Privacy Professionals (IAPP), International Association of Security Awareness Professionals (IASAP), Internet Security Alliance (ISA), Japan Information Industry Association (JISA), Korea Information Security Industry Association (KISIA), National Association of Insurance & Financial Advisors (NAIFA)


Cybersecurity Insurance as a Risk Mitigation Strategy Moderately Impacting the Market

The surging number of cyberattacks, growing awareness on cyber security and related insurance, and increasing government regulations are the factors encouraging the adoption of related policies for risk mitigation. As more cyber risk-related regulations are being adopted, such as notification requirements, the end-use industries are looking at insurance as a means to efficiently deal with the evolving cybersecurity risks. Hence, rising adoption of cyber risk mitigation solutions will boost growth in the cyber insurance market.

Market Players Launching New Products to Gain Competitive Edge

The cyber insurance market is fragmented and competitive in nature, with the presence of a large number of players. Some of the key payers operating in the industry are Chubb Limited, American International Group Inc. (AIG), AXA XL, Beazley Plc, and The Travelers Companies Inc., and these companies cumulatively hold a significant share in the market.
In recent years, players in the cyber insurance market have launched a number of products to stay ahead of their competitors. For instance:

  • In February 2020, Beazley Plc announced the launch of its Virtual Care insurance policy in the U.S. to offer protection against the risks associated with technology-enabled healthcare and lifestyle management services. The product covers e-crime, business interruption loss, dependent business interruption, data recovery loss, cyber extortion loss, and crypto jacking.
  • In September 2019, The Travelers Indemnity Company announced the launch of Travelers Catastrophe Map Viewer, a new capability that provides agents and brokers with before-and-after photos of areas affected by disasters. It provides high-resolution aerial images after a catastrophic event before anyone can physically access the location. The tool enables agents and brokers to quickly notify customers about the condition of their property and begin the claim process when necessary.

Cyber Insurance Market

Some of the key players operating in the cyber insurance market are mentioned below:

  • American International Group Inc. (AIG)
  • Chubb Limited
  • Zurich Insurance Group AG
  • Berkshire Hathaway Inc.
  • Munich Re Group
  • Lockton Companies Inc.
  • Aon Plc
  • Allianz Group
  • AXA XL
  • Arthur J. Gallagher & Co.
  • The Travelers Companies Inc.
  • Beazley Plc
  • Fairfax Financial Holdings Limited
  • Axis Capital Holdings Limited
  • Liberty Mutual Holding Inc.

Cyber Insurance Market Size Breakdown by Segment

The cyber insurance market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Policy

  • Data Breach
  • Identity Theft
  • Malware Attack
  • Phishing
  • Email Spoofing

Based on Product Type

  • Standalone
  • Integrated

Based on Service

  • Insurance
  • Claims
  • Risk Consulting

Based on Enterprise

  • Large Enterprises
  • Small- and Medium-Sized Enterprises (SMEs)

Based on End User

  • Banking, Financial Services, and Insurance (BFSI)
  • IT & Telecom
  • Healthcare
  • Government
  • Retail and E-Commerce
  • Manufacturing

Geographical Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Spain
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Australia
  • Latin America (LATAM)
    • Brazil
    • Mexico
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • U.A.E.
    • Turkey
    • South Africa
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