The global cyber insurance market size is expected to advance at a CAGR of 19.1% during 2022–2030, to reach $48,328.4 million by 2030. This can be attributed to the surging legislation concerning cybersecurity, the increasing number of cyberattacks, and the implementation of related insurance as a risk mitigation strategy.
Global ownership of cryptocurrencies has been increasing daily. Threats to cryptocurrencies are growing more quickly as cryptocurrency ownership increases. Highly unstable cryptocurrencies are the target of high-value hacks, which cause investors to lose millions and the industry as a whole to lose billions. For instance, in March 2022, hackers broke into the blockchain project Ronin and stole bitcoin worth roughly $540 million. This was one of the biggest cryptocurrency thefts ever reported. Hence, companies have started investing in insurance plans to help them from fending off these dangerous risks in order to combat crypto threats.
Organizations have implemented work-from-home or remote working policies. As a result, the need for enterprise virtual private network (VPN) servers has increased, with their security and availability taking center stage. However, a company's inadequate cybersecurity procedures resulted in incorrect VPN configurations, which may then disclose private information or data online. Additionally, this may make operating devices extremely susceptible to DoS assaults.
Large enterprises are estimated to have contributed higher revenue to the market, accounting for around $8 billion, in 2022. Large enterprises keep themselves abreast of the latest trends and deploy advanced technologies, such as cloud technologies, internet of things (IoT), artificial intelligence (AI), machine learning, and big data, to manage operations efficiently. The deployment of such technologies results in the generation of a large amount of data, which also includes customers’ personal data classified as highly sensitive.
Although the integration of such technologies benefits these organizations in several aspects, it creates room for potential cyberattack threats. Cybercriminals prefer these companies as their major targets in order to breach a large amount of data in one go. Owing to such factors, large organizations are increasingly investing in cyber insurance in order to minimize the risks associated with cyberattacks. Furthermore, these companies have comparatively higher spending capacity for implementing robust solutions for cybersecurity. Such factors result in the higher adoption of cyber insurance policies among large enterprises, globally.
Whereas, the demand for cyber insurance among SMEs is projected to grow at a higher CAGR, over 20%, in the coming years. 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 policies among these organizations.
The most-significant cyber insurance market players are American International Group Inc. (AIG), Chubb Limited, Zurich Group, Berkshire Hathaway Inc., Munich Re Group, Lockton Companies Inc., Allianz SE, Arthur J. Gallagher & Co., The Travelers Companies Inc., and Fairfax Financial Holdings Limited.