Cybersecurity Insurance Market Forecasts to 2028 – Global Analysis By Component (Solution, Service and Other Components), Insurance Coverage (Data Breach and Cyber Liability), Insurance Type (Packaged and Stand-Alone), Organization Size (Large Enterprises

Cybersecurity Insurance Market Forecasts to 2028 – Global Analysis By Component (Solution, Service and Other Components), Insurance Coverage (Data Breach and Cyber Liability), Insurance Type (Packaged and Stand-Alone), Organization Size (Large Enterprises and SMEs), End User (Technology Providers, Insurance Providers and Other End Users), End User and By Geography

According tStratistics MRC, the Global Cybersecurity Insurance Market is accounted for $11.9 billion in 2022 and is expected treach $38.4 billion by 2028 growing at a CAGR of 21.6% during the forecast period. Solutions for cyber insurance help businesses reduce the risk of cyberthreat activity like data breaches and cyberattacks. The expense of internet-based attacks on information governance, IT infrastructure, and information policy, which frequently are not covered by conventional insurance products and commercial liability plans, are shielded from by this measure. Businesses are implementing cyber insurance coverage as a result of the rising data breaches and cybersecurity concerns.

According tthe Nuspire threat report, there were 26,156,165 exploitation events,1,597,858 malware events, and 1,620,910 Botnets events in 2020.

Market Dynamics:

Driver:

Surge in mandatory cybersecurity regulations and legislations regarding cybersecurity

Many steps have been taken by law enforcement organisations and governmental regulatory entities timprove data security and protection. Covid19 has made policyholders, brokers, insurers, and agents aware of the necessity for a cybersecurity insurance coverage. For instance, the California Assembly has presented a bill that would mandate cybersecurity insurance for all state contractors whhandle regulated and protected personal information. The expansion of data privacy laws, such as the Health Insurance Portability and Accountability Act (HIPAA) in the US, the global Payment Card Industry Data Security Standard (PCI DSS), and the General Data Protection Regulation (GDPR) of the European Union (EU), is motivating insurance companies tprioritise cybersecurity insurance measures. The rate of cyberattacks has dramatically increased as a result of rising digitalization, particularly during the COVID-19 epidemic. So, it is anticipated that the adoption of the cybersecurity insurance industry in the future will be driven by complicated governance needs and regulations in data security.

Restraint:

High Premium Cost tHamper Market Growth

With protection from cyberthreats and crimes, cyber insurance benefits various businesses, driving up demand for insurance coverage. Nonetheless, the market faces issues with the high premium insurance policy cost. The insurance firms' increase in the cost of policies is impeding both their renewal and continuation. As prices rise, corporations like American International Group Inc. are raising premium rates by 30% and lowering coverage limitations. Small and medium-sized businesses (SMEs) with limited resources are hesitant tinvest more in security insurance. It follows that high price will likely impede market expansion.

Opportunity:

Adoption of artificial intelligence AI and blockchain technology for risk analytics

Among the most recent hot technologies, AI and blockchain are predicted tgive risk analytics solutions increased capabilities and offer up new business opportunities. These technologies' integration with risk analytics programmes would help cybersecurity insurance companies with some of their most pressing problems. The development of modern technology allows for quicker transactions and settlements, which help financial institutions and their customers execute transactions and settlements more quickly while alsdoing away with the need for intermediate fees. In order tanalyse claims, manage reserves, and provide policy coverage, risk analytics solutions are crucial. In order tquickly analyse data and produce insights, a number of suppliers have started combining cutting-edge methodologies like statistical modelling, image processing, and machine learning (ML).

Threat:

Despite soaring cybersecurity risks, cyber insurers grapple tgain traction

Insurance companies struggle tsell stand-alone cybersecurity insurance products despite the surge in security events. Despite the growth in security and ransomware events, mid-sized businesses are sluggish tpurchase stand-alone cybersecurity insurance coverage. Cyber hazards are the top issue for risk managers in both SMEs and large companies in the United States, according tthe Allianz Risk Barometer survey. The market for cybersecurity insurance is being constrained by a number of problems, including high pricing, limited coverage limits, complicated coverage terms, and a lack of consumer knowledge of these plans.

Covid-19 Impact

The pandemic has forced people and companies tadopt remote working and has hastened the digitalization of company processes. Enterprise Virtual Private Network (VPN) servers are now required by businesses as more workers choose twork from home. Because of this, cybercriminals all around the world recognised opportunities tprofit from the situation. Because hackers are utilising this issue as a lure timitate brands and trick employees, the pandemic period saw an increase in mail spam, ransomware attacks, and phishing attempts. Both large and small businesses can obtain complete cyber coverage through insurance policies in the case of an attack or breach. Most cyber insurance policies offer a wide variety of coverage that is pertinent tthe present situation.

The standalone segment is expected tbe the largest during the forecast period

The standalone segment is estimated thave a lucrative growth, due tits complete cover policy. An organisation is shielded from legal action brought about by security or privacy breaches that claim a failure tprotect sensitive information through a standalone type of insurance. Moreover, standalone policies protect against a variety of asset risks, such as business interruption, data loss/destruction, and money transfer loss.

The BFSI segment is expected thave the highest CAGR during the forecast period

The BFSI segment is anticipated twitness the fastest CAGR growth during the forecast period. Concerns about cybersecurity are likely tbe sparked by the growing digitalization of businesses, the expansion of customer-sensitive data, the use of mobile applications, and online banking. The banking sector is likely tbe a popular target for hackers since it retains such a vast amount of client data. The BFSI sector's need for cybersecurity insurance will likely rise as a result.

Region with highest share:

North America is projected thold the largest market share during the forecast period owing tthis region's stable and well-established economies, which enable it tmake large investments in research and development (R&D) operations, new technologies for the cybersecurity insurance industry are being developed. The majority of leading players in the cybersecurity insurance market are anticipated tbe the main drivers of the market's growth in this area.

Region with highest CAGR:

Europe is projected thave the highest CAGR over the forecast period, owing tthe altering insurance regulatory laws that raise the demand for these insurance services are tblame for the regional expansion. According tdata by Wavestone, Marsh, and the legal firm CMS, insurance claims are increasing across Europe faster than the number of policies, as enterprises' use of digital technology leaves them open tcriminal assaults.

Key players in the market

Some of the key players profiled in the Cybersecurity Insurance Market include CNA Financial Corporation, Travelers Indemnity Company, Chubb, Zurich Insurance, The Hanover Insurance, Inc., AXIS Capital Holdings Limited, American International Group, Inc., Beazley Group, AXA XL, XL Group Ltd, BCS Financial Corporation, Berkshire Hathaway Inc., Aon PLC, Bin Insurer Holding LLC, Lockton Companies Inc., SecurityScorecard Inc., Allianz Global Corporate & Specialty and Munich Re Group.

Key Developments:

In October 2022, AXA XL launched an incident response team in the Americas. The Cyber Incident Response team determines commitment tthe clients and helps them before, during, and after cyber incident.

In July 2022, AXA XL announced cyber insurance roles and regional management appointments in the U.S. These roles help tfocus on the company's growth strategy and discover innovative methods taddress complicated cyber & technology risks.

In September 2021, Zurich Insurance Group joined Toronto-based Insurtech BOXX Insurance. This collaboration provided fully integrated insurance and cyber security solution for SMEs, families, and consumers.

In September 2021, BlinkSM by Chubb and USAA Insurance Agency collaborated toffer personalized cyber protection tfamilies and USAA members. The standalone insurance policy includes expenditures related ta personal cyber event, including fraudulent wire transfers, identity theft, ransomware extortion, and cyberbullying.

In March 2021, CNA launched CNA CyberPrep. It is an upbeat program of cyber risk services intended thelp organizations take a complete approach tcyber threats and help CNA cyber policyholders identify, mitigate, and respond tthreats.

Components Covered:
• Solution
• Service
• Other Components

Insurance Coverage Covered:
• Data Breach
• Cyber Liability

Insurance Types Covered:
• Packaged
• Stand-Alone

Organization Sizes Covered:
• Large Enterprises
• SMEs

End Users Covered:
• Technology Providers
• Insurance Providers
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements