The global cyber insurance market size in the post-COVID-19 scenario is projected to grow from USD 7.8 billion in 2020 to USD 20.4 billion by 2025, at a CAGR of 21.2% during the forecast period.
The major factors driving the market include the increasing number of security breaches and cyberattacks resulting in huge financial losses and stringent government regulations towards the adoption of cyber insurance policies.
The market study covers the cyber 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.
By insurance coverage, the cyber liability segment expected to hold a larger market size in 2025
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 cyber 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 cyber insurance solutions. Cyber liability coverage policies can assist insurers to offer first party and third part cyber coverage to prevent the post effects of a security breach that could result in critical business losses.
APAC 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. APAC is home to large number of established Small and Medium-sized Enterprises (SMEs), which are growing at a laudable pace to cater to their large customer base.
SMEs are rapidly adopting cyber 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.
Key vendors offering various types of cyber insurance solutions include Allianz Group, AIG, Chubb, Aon, Zurich, AXA, and Berkshire Hathaway, among others
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview 5.1 Market Dynamics 5.1.1 Drivers 22.214.171.124 Surge in Mandatory Cybersecurity Regulations and Legislations to Boost Demand for Insurance Protection 126.96.36.199 High Rate of Recovery of Financial Losses to Promote Growth of Market 188.8.131.52 Increase in the Frequency and Sophistication of Cyber Threats 5.1.2 Restraints 184.108.40.206 Lack of Awareness Related to Cyber Insurance and Reluctance in Choosing Cyber Insurance Over Cybersecurity Solutions 220.127.116.11 Soaring Cyber Insurance Costs 5.1.3 Opportunities 18.104.22.168 Exclusion of Cyber Insurance Cover from Property and Casualty (P&C) Insurance 22.214.171.124 Adoption of Artificial Intelligence and Blockchain Technology for Risk Analytics 5.1.4 Challenges 126.96.36.199 Cyber Insurers Grapple to Gain Traction Despite Soaring Cybersecurity Risks 188.8.131.52 Data Privacy Concerns 184.108.40.206 Lack of Understanding, Technical Knowledge, and Absence of Historical Cyber Data for Effective Underwriting 5.2 COVID-19-Driven Market Dynamics 5.2.1 Drivers and Opportunities 5.2.2 Restraints and Challenges 5.2.3 Cumulative Growth Analysis 5.3 Industry Trends 5.4 Value Chain Analysis 5.5 Ecosystem 5.6 Average Selling Price Trend 5.6.1 Cyber Insurance Average Selling Price for Small and Medium-Sized Enterprises 5.6.2 Cyber Insurance Premiums Trend 5.7 Technology Analysis 5.7.1 Artificial Intelligence and Machine Learning 5.7.2 Big Data Analytics 5.7.3 Internet of Things Security 5.7.4 Blockchain 5.7.5 Cloud 5.8 Cybersecurity Regulatory Implications 5.8.1 General Data Protection Regulation 5.8.2 Payment Card Industry-Data Security Standard 5.8.3 Health Insurance Portability and Accountability Act 5.8.4 Federal Information Security Management Act 5.8.5 Gramm-Leach-Bliley Act 5.8.6 Sarbanes-Oxley Act 5.8.7 International Organization for Standardization 27001 5.9 Use Cases 5.9.1 European Financial Service Provider Leveraged Bitsight for Security Performance Management 5.9.2 Country Mutual Insurance Company Leveraged Cyberark's Privileged Security Access Platform 5.9.3 A Global 500 Insurance Company Chose Prevalent's Third-Party Risk Management Solution 5.9.4 Aon Secured Financial Institution's Funds and Data from Third-Party Cyber Risks 5.9.5 Chubb's Cyber Insurance Cover Assisted a Small and Medium-Sized Enterprise in Recovering Their Financial Losses 5.10 Patent Analysis 5.10.1 Insurance Patents 5.11 Adjacent Markets
6 Cyber Insurance Market, by Component 6.1 Introduction 6.2 Solutions 6.2.1 Solutions: Market Drivers 6.2.2 Cyber Insurance Analytics Platforms 6.2.3 Disaster Recovery and Business Continuity 6.2.4 Cybersecurity Solutions 220.127.116.11 Cyber Risk and Vulnerability Assessment 18.104.22.168 Cybersecurity Resilience 6.3 Services 6.3.1 Services: Market Drivers 6.3.2 Consulting/Advisory 6.3.3 Security Awareness Training 6.3.4 Other Services
7 Cyber Insurance Market, by Insurance Coverage 7.1 Introduction 7.2 Data Breach 7.2.1 Data Breach: Market Drivers 7.2.2 Data Loss 7.2.3 Denial of Service and Downtime 7.2.4 Ransomware Attacks 7.2.5 Other Providers 7.3 Cyber Liability 7.3.1 Cyber Liability: Market Drivers 7.3.2 Type 22.214.171.124 Data Protection and Privacy Costs 126.96.36.199 Non-Compliance Penalty 188.8.131.52 Brand and Related Intellectual Property Protection 184.108.40.206 Other Cyber Liability Type 7.3.3 Source/Target 220.127.116.11 Internal 18.104.22.168 External
9 Cyber Insurance Market, by Organization Size 9.1 Introduction 9.2 Large Enterprises 9.2.1 Large Enterprises: Market Drivers 9.3 Small and Medium-Sized Enterprises 9.3.1 Small and Medium-Sized Enterprises: Market Drivers
10 Cyber Insurance Market, by End-User 10.1 Introduction 10.2 Technology Providers 10.2.1 Technology Providers: Market Drivers 10.2.2 Insurance Companies 10.2.3 Third-Party Administrators, Brokers, and Consultancies 10.2.4 Government Agencies 10.3 Insurance Providers 10.3.1 Insurance Providers: Market Drivers 10.3.2 Financial Services 10.3.3 It and Ites 10.3.4 Healthcare and Life Sciences 10.3.5 Retail and Ecommerce 10.3.6 Telecom 10.3.7 Travel, Tourism, and Hospitality 10.3.8 Other Insurance Providers
11 Cyber Insurance Market, by Region
12 Competitive Landscape 12.1 Introduction 12.2 Market Evaluation Framework 12.3 Key Player Strategies/Right to Win 12.3.1 Overview of Strategies Deployed by Key Cyber Insurance Technology Vendors 12.4 Revenue Analysis of Top Market Players 12.5 COVID-19 Impact: Revenue Analysis of Insurance Providers 12.5.1 COVID-19 Impact and Revenue Analysis of Insurance Providers 12.6 Historic Revenue Analysis 12.7 Competitive Evaluation Matrix, 2020 12.7.1 Star 12.7.2 Emerging Leader 12.7.3 Pervasive 12.7.4 Participant 12.8 Strength of Product Portfolio Analysis of Top Technology Players 12.9 Business Strategy Excellence Analysis of Top Technology Players 12.10 Startup/SME Evaluation Matrix, 2020 12.10.1 Progressive Companies 12.10.2 Responsive Companies 12.10.3 Dynamic Companies 12.10.4 Starting Blocks 12.11 Ranking of Key Technology Players in Market, 2020 12.12 Ranking of Key Insurance Providers in Market, 2020