Despite comprehensive cybersecurity measures being introduced to prevent and mitigate cyber-attacks, losses arising from security breaches continue to affect organizations profit margins.
Increasing awareness of cyber risk among high-ranking executives and cyber-related losses are driving market growth. It is also likely that the introduction of data security regulations in emerging nations will drive the market as well. Cyber insurance and reinsurance companies took this opportunity to achieve high margins.
The size of the cyber insurance market is anticipated to attract $14 billion by 2022, showing a 28 per cent CAGR during the 2016-2022 forecast period.
The cyber insurance market is segmented on the basis of company size, sector, and geography. Companies are classified as very small ($2.5 million to $99 million), small ($100 million to $299 million), medium-sized ($300 million to $1 billion) and large ($1.1 billion and above) companies. Large companies, among others, pay higher premiums for cyber-liability plans. Various verticals of the industry covered in this study include healthcare, retail, financial services, IT & services, and others (business, energy, education, government, manufacturing).
Due to the rapidly increasing incidence of cybercrimes, digital fraud, threats and data breaches, the Internet and online risk management has become one of the top priorities for businesses.
Rising cyber awareness among high-ranking executives.
Region Wise Cyber Insurance Market Analysis
While the Asia-Pacific cyber insurance market is in its infancy, growth in awareness of cyber risk along with the implementation of data breach legislation drives the Asia-Pacific market.
Data breach legislation laws have already been adopted by South Korea and Australia, while other countries such as China, India, Malaysia, and Indonesia are currently preparing suitable bills. This is expected to lead to an increase in demand for cyber insurance policies.
Asian countries rising prominence in the global economy has drawn the government's attention and pressured these emerging economies to strengthen their cybersecurity. This allowed cyber insurance providers to potentially take advantage of the opportunity by providing risk plans and selling cyber services to improve industry protection strategies.
The demand in North America accounted for the largest share of revenue in 2018. The region's growth can be attributed to the presence of leading players
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