Cybersecurity Insurance Market by Component (Solutions and Services), Type (Standalone & Packaged), Coverage (Data Breach & Cyber Liability), Organization Size, End User (Technology & Insurance) and Region - Global Forecast to 2027

Cybersecurity Insurance Market by Component (Solutions and Services), Type (Standalone & Packaged), Coverage (Data Breach & Cyber Liability), Organization Size, End User (Technology & Insurance) and Region - Global Forecast to 2027

The global cybersecurity insurance market size in the post-COVID-19 scenario is projected to grow from USD 11.9 billion in 2022 to USD 29.2 billion by 2027, at a CAGR of 19.6% during the forecast period. The presence of various key players in the ecosystem has led to competitive and diverse market. complex governance requirements and regulations in data security are expected to drive the adoption of the cybersecurity insurance market in the future. The awareness about security risks and potential losses due to threats has induced governments and organizations to increase the expenditure on cybersecurity. Enterprises worldwide are heavily investing in security solutions, and little heed is paid toward cybersecurity insurance. the lack of awareness related to employing cybersecurity insurance to prevent hefty financial losses could be a hindrance to the cybersecurity insurance market growth.

“By insurance coverage, the cyber liability segment expected to hold a larger market size during the forecast period.”
Cyber risk insurance or cyber liability insurance coverage helps an organization cover the cost to recover from a data breach, virus, or other cyber-attacks. Cyber liability insurance covers expenses related to first parties and also third-party claims. The cybersecurity insurance policy covers some reimbursable expenses such as investigation, business losses, lawsuits and extortion, and privacy and notification. The growing sophistication of cyber-attacks and stringent regulatory mandates persuade enterprises to proactively adopt cybersecurity insurance solutions. Cyber liability coverage policies can assist insurers to offer first party and third part cyber coverage to prevent from the post effects of a security breach that could result in critical business losses.
Key vendors offering various types of cybersecurity insurance solutions include Allianz Group, AIG, Chubb, Aon, Zurich, AXA, and Berkshire Hathaway, among others

“By insurance type, the standalone segment is expected to grow with the highest CAGR during the forecast period”
With the importance of cybersecurity insurance flourishing due to the increased frequency of cyber threats, the need for dedicated standalone cybersecurity insurance policies has arisen. Package cyber premiums are a part of P&C or other insurance coverage. With the need for dedicated cybersecurity insurance policies and to avoid cases of ‘silent cyber,’ standalone cybersecurity insurance policies have gained momentum in the market. Standalone cyber policies are expected to outpace packaged cybersecurity insurance policies. Organizations’ growing concerns about cyber risks and their sole motive to purchase strategies only for cyber risk protection are driving the market growth for standalone cyber policies.

“Asia Pacific to register the highest growth rate during the forecast period”
Asia Pacific (APAC) comprises of emerging economies, such as Australia and New Zealand, China, Singapore, and Japan, with developed security infrastructure. Machine Learning (ML), Internet of Things (IoT), big data analytics, and Artificial Intelligence (AI) are emerging methodologies that are being deployed in this region. Asia Pacific is home to large number of established Small and Medium-sized Enterprises (SMEs), which are growing at laudable pace to cater to their large customer base. SMEs are rapidly adopting cybersecurity insurance solutions to manage their enterprise data. Despite the growing importance of SMEs in this region, they are most affected mostly by cyber and malware attacks owing to budgetary constraints and resource shortages.

Breakdown of primaries

The study contains insights from various industry experts, ranging from solution vendors to Tier 1 companies. The break-up of the primaries is as follows:

By Company Type: Tier 1 – 55%, Tier 2 – 30%, and Tier 3 – 15%
By Designation: C-level – 40%, D-level – 25%, and Others – 35%
By Region: North America – 60%, Europe – 20%, APAC – 12%, RoW – 8%
The technology vendors covered in the cybersecurity insurance market report include BitSight (US), Prevalent (US), RedSeal (US), SecurityScorecard (US), Cyber Indemnity Solutions (Australia), Cisco (US), UpGuard (US), Microsoft (US), Check Point (US), AttackIQ (US), SentinelOne (US), Broadcom (US), Accenture (Ireland), Cylance (US), FireEye (US), CyberArk (US), CYE (Israel), SecurIT360 (US), and Founder Shield (US). The insurance vendors covered in the cybersecurity insurance market are Allianz (Germany), AIG (US), Aon (UK), Arthur J. Gallagher & Co (US), Travelers Insurance (US), AXA XL (US), AXIS Capital (Bermuda), Beazley (UK), Chubb (Switzerland), CNA Financial (US), Fairfax Financial (Canada), Liberty Mutual (US), Lloyd’s of London (UK), Lockton (US), Munich Re Group (Germany), and Sompo International (Bermuda). The startup vendors covered in the cybersecurity insurance market are At-Bay (US), Cybernance (US), CyberCube (US), Coalition (US), Arceo.ai (US), Kovrr (Israel), Sayata Labs (Israel), Zeguro (US), RiskSense (US), Cyence (US), SafeBreach (US), and Cronus Cyber Technologies (Israel). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the cybersecurity insurance market.

Research Coverage
The market study covers the cybersecurity insurance market size across different segments. It aims at estimating the market size and the growth potential across different segments, including application, service model, security type, organization size, vertical, and region. The study further includes an in-depth competitive analysis of the leading market players, along with their company profiles, key observations related to product and business offerings, recent developments, and market strategies.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the global cybersecurity insurance market and its subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and to plan suitable go-to-market strategies. Moreover, the report will provide insights for stakeholders to understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.