Global Cybersecurity Insurance Market Size, Share & Industry Trends Analysis Report By Component, By Insurance Coverage, By Insurance Type, By Organization Size, By End User, By Regional Outlook and Forecast, 2022 - 2028

Global Cybersecurity Insurance Market Size, Share & Industry Trends Analysis Report By Component, By Insurance Coverage, By Insurance Type, By Organization Size, By End User, By Regional Outlook and Forecast, 2022 - 2028

The Global Cybersecurity Insurance Market size is expected to reach $32.6 billion by 2028, rising at a market growth of 18.8% CAGR during the forecast period.

Cybersecurity insurance plays an important role in banking and financial institutions. Throughout the forecast period, the sector is anticipated to control a sizable portion of the market. Identity fraud is common there and it is one of the businesses that is tightly controlled and governed, which drives up demand. The landscape of every nation's essential infrastructure and business networks is evolving as a result of improvements in information technology, communication technologies, and the smart energy grid. However, as technology advances quickly, so do the hazards that accompany it.

Personal information is valuable, cybercriminals commit crimes where personal data, including credit card numbers, identities, medical records, and other details, is sold on the dark web. It is one of the few things that have caused the demand for cybersecurity to rise. One of the most quickly expanding recent technologies is cloud computing, which has helped to break down traditional IT borders, open up new markets, fuel the mobility movement, and enhance unified communications. To reduce the risks associated with maintaining sensitive data in the current cybersecurity scenario, a variety of IT stakeholders and companies are turning to innovative insurance models.

A wider variety of security controls and technologies would be considered by insurers as the market for cybersecurity insurance continues to develop. As a result, the degree of data sensitivity and an organization's capacity to sufficiently disguise it will be crucial in evaluating the overall risk, which is what is motivating the adoption of new technologies like microsharding. To limit the attack surface and remove data sensitivity, microsharding technology divides data into units as small as one-digit bytes before distributing shards to various locations.

COVID-19 Impact Analysis

Numerous governments and regulatory bodies have mandated that both public and commercial enterprises adopt new methods for working remotely and upholding social distance during the COVID-19 pandemic crisis. Since then, several firms' new business continuity plans (BCPs) have been based on digital methods of conducting business. People are increasingly inclined to employ digital technologies due to the widespread usage of BYOD devices, the WFH trend, and the penetration of the internet into every corner of the world. This is driving the demand for cyber insurance measures to protect against the fallout from cyber-attacks.

Market Growth Factors

Use Of Blockchain Technology With Artificial Intelligence (Ai) For Risk Analysis

Among the most recent hot technologies, AI and blockchain are predicted to give risk analytics solutions increased capabilities and offer up new business opportunities. These technologies' integration with risk analytics programs would help cybersecurity insurance companies with some of their most pressing problems. The development of modern technologies enables quicker transactions and settlements, making it easier for financial institutions and their clients to perform transactions while removing the need for middleman fees. To analyze claims, manage reserves, and provide policy coverage, risk analytics solutions are crucial.

Cyber Liability Insurance Benefits

Organizations are legally required to notify impacted parties in the case of a breach. This may increase the entire cost of a data breach, especially when it comes to security updates, identity theft protection for those affected by the breach, and defense against potential legal action. User data would be protected from cyber criminals by the coverage provided by cyber liability plans for these exposures. compensation for business loss due to disruption. An IT breakdown brought on by a cyberattack can disrupt corporate operations and cost organizations money and time.

Market Restraining Factors

Rising Expenses For Cybersecurity Insurance

One of the main things preventing the cybersecurity insurance market from expanding is the higher price of cybersecurity insurance. Due to the ransomware assaults over the past two to three years, insurance firms have been forced to pay out hefty claims. The expense of recovering the compromised system is substantial, even if the cybersecurity insurance firms do not pay the ransom. To compensate for the increased costs resulting from the extra services, such as aid with data recovery following a ransomware attack, cybersecurity insurance firms are raising the coverage rates.

Component Outlook

Based on component, the cybersecurity insurance market is segmented into solutions (Cybersecurity solutions, Analytics Platforms, Disaster Recovery & Business Continuity) and services. The services segment witnessed a significant revenue share in the cybersecurity insurance market in 2021. Due to the growing use of technologies like Blockchain and the Internet of Things. Moreover, post-incident services are expected to expand the market. Zurich Cyber Security Services, Aon Cyber Risk Professional Service, Munich Re Cyber Risk Services, and others are a few of the well-known offerings.

Insurance Coverage Outlook

On the basis of insurance coverage, the cybersecurity insurance market is bifurcated into Data Breach and Cyber Liability. The cyber liability segment garnered the highest revenue share in the cybersecurity insurance market in 2021. It is because businesses can purchase a variety of coverage choices under a cyber liability insurance policy to help guard against data theft and other cyber security problems. Every type of business that uses technology to conduct business, from multinational corporations to mom-and-pop shops, is at risk from cyberattacks.

Insurance Type Outlook

By insurance type, the cybersecurity insurance market is divided into Packaged and Stand-alone. The standalone segment witnessed a substantial revenue share in the cybersecurity insurance market in 2021. It is because the demand for solo insurance is projected to increase due to its comprehensive cover policy. The Swiss Re research on personal cyber security insurance predicts double-digit growth for standalone insurance over the next few years.

Organization Size Outlook

Based on organization size, the cybersecurity insurance market is classified into small & medium enterprises (SMEs) and large enterprises. The large enterprise segment procured the highest revenue share in the cybersecurity insurance market in 2021. An enterprise with more than 1,000 employees invests heavily in cutting-edge technology to improve efficiency and productivity. In the highly competitive environment in which their businesses operate, large companies frequently choose cybersecurity insurance solutions and are expected to invest heavily in advanced cybersecurity insurance solutions in the future.

End-User Outlook

On the basis of end-user, the cybersecurity insurance market is categorized into Technology providers [Insurance companies, third-party administrators, brokers, and consultancies, Government agencies] and Insurance providers [Financial services, Telecom & IT, Healthcare and life science, Retail and Consumer goods, Telecom, Travel, tourism, and hospitality, and Others. The insurance provider segment registered a substantial revenue share in the cybersecurity insurance market in 2021. Due to the vast clientele that the sector serves and the sensitive financial information at risk, the BFSI business is one of the vital infrastructure categories that frequently experience data breaches and cyberattacks.

Regional Outlook

Region-wise, the cybersecurity insurance market is analyzed across North America, Europe, Asia Pacific and LAMEA. The North America region garnered the highest revenue share in the cybersecurity insurance market in 2021. Because North America's economies are stable and well-established, it can make considerable investments in R&D projects, which helps the market for cybersecurity insurance to create new technologies. The market in this area is anticipated to develop significantly due to the presence of the majority of major players in the cybersecurity insurance market.

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the forerunner in the Cybersecurity Insurance Market. Companies such as Cisco Systems, Inc., Accenture PLC, Check Point Software Technologies Ltd. are some of the key innovators in Cybersecurity Insurance Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Cisco Systems, Inc., Microsoft Corporation, Check Point Software Technologies Ltd., Accenture PLC, FireEye, Inc., SentinelOne, Inc., UpGuard, Inc., CYE (Cyesec Ltd.), BlackBerry Limited (CYLANCE), and BitSight Technologies, Inc.

Recent Strategies Deployed in Cybersecurity Insurance Market

Partnership, Collaboration and Agreement:

Apr-2022: Microsoft came into a partnership with HCL Technologies, a leading global IT services company. Through this partnership, the companies aimed to integrate HCL Technologies’ cybersecurity fusion platform solutions and in-depth domain details, to Microsoft’s range of security products such as Azure Sentinel and Microsoft 365 E5, provides companies the building blocks to effectively protect against a vibrant cybersecurity ecosystem.

Feb-2022: SentinelOne formed a partnership with Mandiant, the leader in dynamic cyber response and defense. Together the companies aimed to assist companies to decrease the risk of data breaches and reinforce capabilities to alleviate cyber risks. Additionally, the partnership permits Mandiant’s well-known incident responders to utilize SentinelOne’s Singularity XDR platform to analyze and rectify violations.

Feb-2022: Check Point Software Technologies partnered with Redington India Limited, the largest IT software and products supplier in India. Through this partnership, Redington would be a supplier for Check Point Software's cybersecurity solutions to SMBs in India, via a 15,000-strong partner network. Additionally, the companies aimed to provide rigid security to the Small and Medium-Sized Business industries in India.

Dec-2021: Accenture came into a partnership with Generali along with Vodafone Business. Through this partnership, the companies aimed to introduce an offering of cyber insurance services straight to Generali 2021 strategic scheme, which aims to strengthen the organization’s position within the SME and corporate sectors and create modular products and precaution services in the property-casualty industry. Additionally, Accenture would provide Generali clients with cyber risk checks and deliver punctual replies to cyber happenings.

Sep-2021: SentinelOne announced Network Detection and Response integration with Arista along with Fidelis Cybersecurity and Vectra. This integration offers protection, unified visibility, automation, and enforcement transiting the business attack surface. Additionally, SentinelOne’s XDR abilities with NDR partners offer a complete cybersecurity strategy. Moreover, the power of autonomous medium improves NDR solutions’ capability to detect, avoid, and respond to network threats in actual time.

Jan-2021: BitSight formed a partnership with Kovrr, a leader in data-driven cyber risk modeling. Together, the companies aimed to deliver the industry’s most extensive data-driven cyber risk financial quantification solution for the insurance industry. Additionally, BitSight-Kovrr Financial Quantification for Insurance Cyber threat provides cyber insurers the tools needed to create judgments more precisely and confidently about the main spots of the cyber insurance industry such as modeling, underwriting, and suite management.

Aug-2020: Check Point Software Technologies formed a partnership with Claroty, the leader in operational technology. Together, the companies aimed to provide enterprises and essential infrastructure operators the real-time visibility and cybersecurity required to protect industrial control system networks and OT from cyberattacks. Additionally, the integration of Claroty’s Continuous Threat Detection and Check Point’s IoT Protect threat deterrence solution offers industrial consumer safety, visibility, and automation to safeguard networks from occurring IoT threats.

Product Launch and Product Expansion:

May-2022: Cisco introduced a new cybersecurity assessment tool for small and medium-sized companies in the Asia Pacific. The new tool offers expanded the attack range and improved cybersecurity threats outside the boundaries that businesses have traditionally developed to protect the company. Additionally, the new tool sets the cybersecurity willingness of enterprises through the Zero Trust vision.

Nov-2020: Check Point Software Technologies unveiled Check Point R81, a next-generation suitable cyber security platform. The new Check Point R81 is the industry’s first to offer liberated threat prevention developed for the complete distributed industry, allowing IT team to handle the most dynamic and complicated network conditions effectively and easily. Additionally, the platform boosts the policy installation, one-click advancements, and the power to instantly upgrade security gateways.

Acquisition, Joint Venture and Merger:

May-2021: Cisco completed the acquisition of Kenna Security, pioneering risk-based vulnerability management software. Through this acquisition, Cisco would convert the method security and IT teams collaborate to decrease the attack surface as well as the time it takes to witness and react. Additionally, Cisco Security would be integrating threat and risk-based vulnerability administration as part of the SecureX platform, expanding the medium knowledge and allowing complete scorecards for security management and hazard response execution.

Jan-2020: Accenture took over Symantec’s Cyber Security Services business from Broadcom. Through this acquisition, Accenture would be one of the foremost suppliers of managed security services, also improving its capability to assist firms in rapid detection, anticipation, and reaction to cyber dangers.

Scope of the Study

Market Segments covered in the Report:

By Component

• Solution

Analytics Platform

Disaster Recovery & Business Continuity

Cybersecurity Solution

• Services

By Insurance Coverage

• Cyber Liability
• Data Breach

By Insurance Type

• Packaged
• Standalone

By Organization Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By End User

• Technology Provider

Insurance Companies

Third-party Administrators, Brokers, & Consultancies

Government Agencies

• Insurance Provider

Financial Services

Retail & Consumer Goods

Telecom & IT

Travel, Tourism, & Hospitality

Healthcare & Life Sciences

Others

By Geography

• North America

US

Canada

Mexico

Rest of North America

• Europe

Germany

UK

France

Russia

Spain

Italy

Rest of Europe

• Asia Pacific

China

Japan

India

South Korea

Singapore

Malaysia

Rest of Asia Pacific

• LAMEA

Brazil

Argentina

UAE

Saudi Arabia

South Africa

Nigeria

Rest of LAMEA

Companies Profiled

• Cisco Systems, Inc.
• Microsoft Corporation
• Check Point Software Technologies Ltd.
• Accenture PLC
• FireEye, Inc.
• SentinelOne, Inc.
• UpGuard, Inc.
• CYE (Cyesec Ltd.)
• BlackBerry Limited (CYLANCE)
• BitSight Technologies, Inc.

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