July 16, 2024
Cyber Security Insurance Market
Ict

Digital Solutions Segment Is The Largest Segment Driving The Growth Of Cyber Security Insurance Market

The global Cyber Security Insurance Market is estimated to be valued at US$ 13.62 Bn in 2023 and is expected to exhibit a CAGR of 21 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Cyber security insurance protects businesses and individuals from internet-based risks and provides financial coverage resulting from cybercrimes like data breaches, hacking, phishing attacks, and loss of financially sensitive digital data. It also covers lawsuits, investigation costs, fines, payment for recovery or replacement of lost assets, theft of money, and crisis management.

Market key trends:

The rising number of data breaches and cyberattacks is one of the major trends in the cyber security insurance market. Cybercriminals are developing new sophisticated tools and techniques to steal sensitive data from organizations. For instance, in May 2022, a cyberattack on one of South Africa’s largest healthcare systems compromised data of over 30 million people in the country including President Cyril Ramaphosa. This has increased concerns over data privacy and security and boosted demand for cyber security insurance policies among businesses and governments worldwide.

SWOT Analysis

Strength: Cyber security insurance provides financial protection against data breaches, ransomware attacks, and other cyber threats. It helps in minimizing financial losses due to cyber attacks.

Weakness: High premiums of cyber security insurance policies make it unaffordable for small and medium enterprises. Lack of standardization in policy structures increases complexity.

Opportunity: Rising number of sophisticated cyber attacks and stringent data privacy regulations are increasing demand for such insurance. Emerging technologies like IoT and blockchain also present growth opportunities.

Threats: Continuously evolving cyber threats may not be fully covered by existing policies. Lack of sufficient loss history data makes risk assessment difficult.

Key Takeaways

The Global Cyber Security Insurance Market Size is expected to witness high growth, exhibiting CAGR of 21% over the forecast period, due to increasing number of cyber-attacks and stringent data protection laws. North America dominated the market in 2023 with a share of over 35%, due to strict cyber security regulations and high technology adoption in the region. The Asia Pacific region is expected to grow at the fastest pace during the forecast period, owing to rapid digital transformation and increasing awareness about cyber risks in the region.

Regional analysis

North America dominated the global market in 2023 with a share of over 35%, due to strict data privacy regulations like the California Consumer Protection Act (CCPA) and General Data Protection Regulation (GDPR) in the US and Canada. The Asia Pacific region is anticipated to grow at the highest CAGR during the forecast period, due to rapid digitalization of businesses, growing E-commerce industry, and increasing awareness about cyber risks in China, India, and other Asian countries.

Key players

Key players operating in the cyber security insurance market are Berkshire Hathaway Inc., XL Group Ltd, Munich Re Group, Aon PLC, The Chubb Corporation, American International Group Inc., Allianz Global Corporate & Specialty, Zurich Insurance Co. Ltd, Lockton Companies Inc., Bin Insurer Holding LLC and SecurityScorecard Inc.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it