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Cyber Insurance Market to Reach $16,970 Million by 2023, Growing at 20% CAGR

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Published Date:   November 2017

The global cyber insurance market is projected to advance at a CAGR of over 20.0% during 2017-2023 and is expected to reach $16,970.0 million by 2023.

Cyber-attacks result in a loss of brand reputation, which is the reason cited by industry experts for the rising adoption of cyber insurance. The threat of unauthorized access to critical data and unethical access to private and confidential business information has also risen. The global adoption of cyber insurance is projected to escalate in the years to come as cyber-attacks have resulted in a huge loss of revenue and brand value and the trend is expected to continue during the forecast period.

Insights on market segments

In terms of enterprise size, the market is bifurcated into small and medium enterprises (SMEs) and large enterprises. Large enterprises have sufficient funds for risk insurance along with a higher purchasing power; therefore, in 2016 large enterprises held the larger market share in 2016. Contrary to this, SMEs have budget constraints and due to the high costs of premium solutions, refrain from purchasing expensive covers.

The banking, financial services, and insurance (BFSI) industry is the most prone to cyber-attacks, and hence has been the largest revenue contributor the cyber insurance market up till now, holding a 35.0% share in 2016. The retail and manufacturing industry is expected to witness the fastest growth due to the numerous risks prevalent in this industry across domains such as digital supply chain management.

Increasing instances of cyber-attacks are driving the market growth

Cyber analysts have been tracking the criminalization of the internet over the past few years. The growth of the cyber insurance market has accelerated due to the growing threat landscape, which is leading to an increase in the awareness about cyber insurance.

The growth of the cyber insurance market is being impacted positively by the increasing commercialization, globalization, and interconnectivity and the severity of cyber incidents. A cyber-attack inflicts huge financial losses, business continuity failure, and corporate embarrassment, which can impact private and government companies. To cover the risk of enterprise data theft resulting from cyber-attacks, there has been a significant rise in the demand for sophisticated policy cover for cyber insurance solutions.

Americas account for the largest market share

The Americas were the dominating market for cyber insurance during the historical period, contributing 90.0% of the total revenue globally in 2016. The Rest of the World (RoW) market is projected to witness the fastest growth during the forecast period owing to numerous factors such as a rise in investment in risk premium solutions that aims to capture risks associated with the inefficiencies in the market and to further deal with budget constraints, ensure availability of new industry-specific insurance packages and surge in digitization within industries, leading to more data generation.

Access Report Summary with Detailed TOC on "Cyber Insurance Market by Enterprise Size (Large Enterprise, Small and Medium Enterprise), by Service (Insurance, Claim Service, Risk Consulting), by Industry Vertical (BFSI, Healthcare, Retail & Manufacturing, IT Services), by Geography (Americas, Europe, Rest of the World) – Global Market Size, Share, Development, Growth and Demand Forecast, 2013-2023" at: https://www.psmarketresearch.com/market-analysis/cyber-insurance-market

The degree of rivalry in the industry is moderate

The level of competition in the global cyber insurance market is moderate. In order to reach out to their customers in an effective manner, market players are developing new strategies, such as coming up with enhanced products. American International Group Inc., Chubb Limited, Zurich Insurance Group AG, XL Group Ltd., Berkshire Hathaway Inc., Allianz Global Corporate & Specialty SE, and Munich Re Group are some of the major players operating in this industry.

Significant investments have been made by the cyber insurance market players to expand their offerings globally and cater to a larger market. For example, XL Catlin, part of XL Group, announced the launch of its cyber and data protection insurance policy in Asia-Pacific in July 2017 with the aim to protect businesses’ operations and prevent threats.

Cyber Insurance Market Segmentation

Market Segmentation by Enterprise Size

  • Large Enterprise
  • Small and Medium Enterprise (SME)

Market Segmentation by Service

  • Insurance
  • Claim Service
  • Risk Consulting

Market Segmentation by Industry

  • Banking, Financial Services, and Insurance (BFSI)
  • Healthcare
  • Retail & Manufacturing
  • IT Services
  • Others (Energy & utilities, Government, and Transportation & Logistics)

Market Segmentation by Region

  • Americas Cyber Insurance Market
    • By Enterprise Size
    • By Service
    • By Industry Vertical        
  • Europe Cyber Insurance Market
    • By Enterprise Size
    • By Service
    • By Industry Vertical
  • Rest of the World (RoW) Cyber Insurance Market
    • By Enterprise Size
    • By Service
    • By Industry Vertical