Increasing number of cyber-attacks, rising legislations concerning cybersecurity, and growing adoption of cybersecurity insurance as a risk mitigation strategy are the key factors that positively impact the growth of the global cyber insurance market. Due to these factors, the market is expected to generate $70,671.9 million revenue in 2030, advancing at a CAGR of 26.3% during the forecast period (2020–2030).
COVID-19 Impact Analysis
Due to the COVID-19 pandemic, a large number of companies are offering work from home facility to their employees, which is rapidly increasing the chances of cyber-attacks. Therefore, to mitigate the risk of financial loss, the companies are increasingly adopting cyber insurance policies.
Standalone Product Type to Hold the Larger Market Share
The cyber insurance market, based on type, is classified into standalone and integrated. Of these, the standalone category is expected to lead the market in coming years. Standalone cyber insurance provides organizations with the ability to instantly compensate to the first and the third parties for losses in an event of a data breach. Standalone policies reimburse costs that an insured would incur to respond to a breach, which may include IT forensic cost, credit-monitoring cost, data restoration cost, cyber extortion (including ransom payments to hackers), and public-relation expense.
Further, the cyber insurance market, based on enterprise, is bifurcated into large enterprises and SMEs. Of these, the large enterprises category is expected to lead the market in coming years. Large enterprises keep themselves abreast of the latest trends and deploy advanced technologies, which increase the chances of cyber-attacks. Moreover, cyber-attackers prefer large companies to hack, as they can breach a large volume of data at one go. Owing to such factors, large organizations are increasingly investing in cyber insurance, in order to minimize risks associated with cyber-attacks.
Moreover, during the forecast period, the healthcare category is projected to witness the fastest growth in the cyber insurance market. Increasing digitalization and growing penetration of the internet in the healthcare industry for easy access to individual’s data have created online vulnerabilities, due to which crucial data is being exposed to internal and external threats. Owing to such factors, the healthcare vertical has become a major target for cyber-attackers.
Mergers & Acquisitions are the Strongest Strategic Measure Taken by Market Players
Players in the cyber insurance market are focusing on mergers & acquisitions to gain market foothold. For instance, in January 2020, Arthur J. Gallagher & Co. announced the purchase of a minority stake in Malaysian broker SP&G Insurance Brokers Sdn Bhd., a multi-discipline commercial insurance broker specializing in coverages for the aviation market, as well as offering clients with additional expertise and insurance solutions for property & casualty, marine, engineering, and other risks. The company stated that this purchase offers exciting opportunity to expand its commercial insurance footprint in Asia and further extends client reach in the global aviation sector.
Browse report overview with detailed TOC on "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" at:https://www.psmarketresearch.com/market-analysis/cyber-insurance-market
Further, in June 2019, Zurich Insurance Company Ltd. completed the acquisition of Australia and New Zealand (ANZ) Banking Group Limited’s life insurance business, OnePath Life, to expand it banking distribution footprints. The company announced that it can now engage with up to six million new customers with this acquisition and the access to ANZ’s distribution channels.
Some of the major players operating in the global cyber insurance market are 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, and Liberty Mutual Holding Inc.