Global Cyber Insurance Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Cyber Insurance Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Cyber Insurance is an insurance product used to protect businesses and individual users from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Risks of this nature are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products. Coverage provided by cyber-insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions, failure to safeguard data, or defamation; and other benefits including regular security-audit, post-incident public relations and investigative expenses, and criminal reward funds.

Market Overview:

The latest research study on the global Cyber Insurance market finds that the global Cyber Insurance market reached a value of USD 9871.07 million in 2022. It’s expected that the market will achieve USD 76633.25 million by 2028, exhibiting a CAGR of 40.72% during the forecast period.

Healthcare Industry

On the one hand, the medical industry holds the vast majority of residents' information, and the value of customer information in the medical industry is very high. Once it is leaked, it will cause greater losses to customers; on the other hand, cutting-edge medical companies have a large amount of technology, and if information leaks. The damage caused by it cannot be estimated.

Financial Industry

Financial services sector continues to be a prime target for cyber and data breaches and businesses could face enhanced cyber liabilities, Network insurance is gradually becoming a rigid demand.

Product limitations

Information asymmetry has a significant negative impact on most insurance environments, with typical considerations including the inability to distinguish between different (high-risk and low-risk) types of users, the so-called adverse selection issues, and behavioral insurance that users take adversely. The probability of loss after the contract is signed, the so-called moral hazard problem. The challenges posed by the interdependence and related nature of cyber risks are particularly applicable to cyber insurance and distinguish traditional insurance schemes (such as car or health insurance) from the former. In large distributed systems such as the Internet, risk spans a large number of nodes and is relevant. As a result, users invest in security to protect against risks and create positive externalities for other users on the network.

Region Overview:

In global comparison, a significant portion of the revenue was generated in North America (60.29% in 2022).

Company Overview:

Chubb Ltd is one of the major players operating in the Cyber Insurance market, holding a share of 27.67% in 2021.

Chubb Ltd

Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide.

American International Group

American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally.

Segmentation Overview:

As for product types, the Cyber Liability Insurance segment held the largest market share in 2022.

Cyber Security

Insurance Cyber security insurance is a product that is offered to individuals and businesses in order to protect them from the effects and consequences of online attacks. Cyber security insurance is designed to mitigate losses from a variety of cyber incidents, including data breaches, business interruption, and network damage. This product is a recognition of the inherent dangers of storing customer information online and the risks businesses face in this online age. Cyber security insurance can be obtained as a first-party product that focuses on compensating or mitigating the costs that are borne by the holder of the policy. It can also be sold as a third-party insurance product that covers the businesses and people that are found to be “responsible” for a breach.

Cyber Liability Insurance

Cyber liability insurance covers financial losses that result from data breaches and other cyber events and covers your costs when you’re accused of causing or allowing a cyber incident for an outside party. Many policies include both first-party and third-party coverages. First-party coverages apply to losses sustained by your company directly. Third-party coverages apply to claims against your firm by people who have been injured as a result of your actions or failure to act.

Technology Errors and Omissions Insurance

Technology Errors and Omissions Insurance cover physical damage to, or loss of use of, computer-related assets, including the costs of retrieving and restoring data, hardware, software or other information destroyed or damaged as the result of a cyber-attack. Technology Errors and Omissions Insurance coverage is intended to protect providers of technology products and services, such as computer software and hardware manufacturers, website designers, and firms that store corporate data on an off-site basis.

Application Overview:

The market's largest segment by application is the segment Financial Institutions, with a market share of 32.02% in 2022.

Key Companies in the global Cyber Insurance market covered in Chapter 3:

CNA Financial Corp
Zurich Insurance Group
Travelers Companies Inc
Chubb Ltd
Liberty Mutual
American International Group
BCS Financial Corp
AXIS
XL Group Ltd
Beazley Insurance Co

In Chapter 4 and Chapter 14.2, on the basis of types, the Cyber Insurance market from 2018 to 2029 is primarily split into:

Cyber Security Insurance
Cyber Liability Insurance
Technology Errors and Omissions Insurance
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Cyber Insurance market from 2018 to 2029 covers:

Financial Institutions
Retail and Wholesale
Healthcare
IT and Tech Services
Manufacturing

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)