Cyber Security Insurance Market: Global Emerging Opportunities, Trends and Forecast Analysis (2022-2029)

Cyber Security Insurance market was valued at US$ 10.69 Bn. in 2021 and expected to grow at a CAGR of 20.2% during the forecast period (2021-2029). Thanks to the growing trend of solution segment use has boosted demand for Global Cyber Security Insurance Market.
Cyber Security Insurance Market Overview:
The meaning of insurance is providing safety and security to individuals and businesses from financial losses. Cyber insurance is designed to cover organizations or individuals from data breaches and cyber terror attacks which involve financial details, social security numbers, and health records, etc. The importance of cyber insurance is, it provides notification in the event of a breach, helps to monitor information, compensation for legal expenses, and costs incurred in the recovery of data. Growing digitization and increasing electronic storage of data are driving the market growth. As a result, the global cyber security insurance market is expected to reach US$ 46.61 Bn. during the forecast period.To know about the Research Methodology :- Request Free Sample Report
Cyber Security Insurance Market Dynamics:
Growing digitization and increased usage of internet-connected devices are the major factors driving the growth of the global market. More than 29 Bn. devices are expected to connect internet by 2022. Due to the recent global pandemic, more people working in remote areas with unsecured networks, weak passwords, and use of personnel devices, etc. are more prone to threats and vulnerabilities. This can create demand for the cyber security insurance market.

Growth of banking, financial, and insurance sectors, small and medium scale industries, and increasing awareness about the benefits of cyber insurance are the factors adding advantage to the growth of the cyber security insurance market. “SharkBot” is a new android malware attacking banking apps in Europe and US and according to US banking regulation, banks should report cyber security incidents within 36 hours of discovery.

Recent developments like an amalgamation of “Generali with Accenture and Vodafone business” to create cyber security insurance services to SMEs, “At-Bay” Israeli-founded insurtech firm drawn funding of US$ 1.35 Bn., predictive analytics algorithms developed by “Cyberwrite” firm and state-of-the-art household cyber protection and prevention technology developed by “Surance.io are expected to boost the cyber security insurance market during the forecast period.

Some of the factors affecting the growth of the cyber insurance market are the increased burden of legislation, smaller companies are staying behind due to their low budget, lack of education among employees about digital threats, limited coverage, limited choice and it cannot replace the need of data protection.
Cyber Security Insurance Market Segmentation:
Based on Component, the Cyber Security Insurance market is sub-segmented into solution and service. The solution segment dominates the global market and it held a share of 62 % in 2021. The increasing number of business organizations, installation of cyber security software, and need for a security operation center are the factors influencing the solution segment growth. The solution segment provides broad coverage, access to experts, patch management, endpoint security response, vulnerability monitoring, and alert system, on-site storage and backup of data, and two-factor authentication. Because of these features solution segment growing positively in the market.Based on Organization Size, the Cyber Security Insurance market is sub-segmented into large organizations and SMEs. The large organization segment dominates the global market and it was valued at US$ 4.3 Bn. in 2021. Increasing investment in cyber insurance to protect organizations from data breaches, risk of losing customer's trust, to protect sensitive information and to cover the cost of a security breach, etc. are the factors that attract the growth of cyber insurance in large organizations.

Based on Coverage, the Cyber Security Insurance market is sub-segmented into first-party coverage and third-party coverage. The first party coverage dominates the market and it held a share of 50% in 2021. Because it covers the expenses that occurred at the time of system or network breaches and data theft. This segment covers cyber extortion payments, notifying affected customers, crisis management, and fraud monitoring services. These are the features boosting the growth of the first-party coverage segment in the market. The third-party segment covers only legal Defence costs, court judgments to pay after a data breach, and other court charges. As a result of these factors growth of third party, segment is slowing in the market.
Cyber Security Insurance Market regional insights:
North America is the dominating region in the Cyber Security Insurance market. The presence of large economies in the region like the US and Canada, increasing use of IoT devices, increased investment in R&D, and increasing malware attacks on BFSI and IT organizations in this region are the factors driving the cyber security insurance market in this region. The major cyber insurance “Resilience” raised US$ 80Mn to battle against ransomware and this model is called “insure plus secure”. Increased supply chain attack and US Department of finance imposing new federal regulations to improve national cyber security framework. These are some recent developments expected to add an advantage to the growth of the cyber security insurance market in this region.

Asia-Pacific is the second dominating region in the cyber security insurance market. The increasing number of small and medium scale industries, remote and hybrid work arrangements post COVID, raising awareness among the new generation, and development of new technologies like artificial intelligence (AI), robotics, and virtual reality (VI) are the major factors driving the growth of cyber insurance market in this region. “Crawford and Aon” organizations agreed to provide a cyber-claim guide and a cyber-security firm “Inspira Enterprises” raised capital of US$ 3000 Mn to provide cyber security solutions and is expected to expand its footprints in Europe, West Asia, and South Asian countries. These are some recent development expected to boost the cyber security insurance market in this region.

The objective of the report is to present a comprehensive analysis of the global Cyber Security Insurance market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market has been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Cyber Security Insurance market dynamics, structure by analyzing the market segments and projecting the Cyber Security Insurance market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global Cyber Security Insurance make the report investor’s guide.
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Cyber Security Insurance Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $  10.69 Bn.


Forecast Period 2022 to 2029 CAGR:
20.2 %
Market Size in 2029:
US $ 46.61 Bn.


 Segments Covered:
by Component
• Solution
• Service


by Organization size
• Large organizations
• SMEs


by Coverage type
• First-Party coverage
• Third-Party coverage



Cyber Security Insurance Market, by Region
• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America
Cyber Security Insurance Market Key Players are:
• TCS Limited
• Guy Carpenter and Company LLC
• At-Bay Inc
• Lloyds Bank PLC
• AXA SA
• Cisco Systems Inc
• Chubb Limited
• Apple Inc
• American International Group Inc
• Zurich Insurance Group
• Beazley Group PLC
• Lockton Companies
• AON Plc
• BitSight
• UpGuard
• Cylance

Frequently Asked Questions:

1. Which region has the largest share in Cyber Security Insurance Market?
Ans: North-America held the largest share in 2021.

2. What is the growth rate of the Cyber Security Insurance Market?
Ans: The Cyber Security Insurance Market is growing at a CAGR of 20.2 % during the forecasting period 2021-2029.

3. What segments are covered in Cyber Security Insurance Market?
Ans: Cyber Security Insurance Market is segmented into Component, Organization size and coverage type.

4. Who are the key players in Cyber Security Insurance Market?
Ans: TCS Limited, Guy Carpenter and Company LLC, At-Bay Inc, Lloyds Bank PLC, AXA SA, Cisco Systems Inc, Chubb Limited, Apple Inc, American International Group Inc, Zurich Insurance Group, Beazley Group PLC, Lockton Companies, AON Plc, BitSight, UpGuard, Cylance Hitachi Automotive Systems Americas Inc

5. What is the study period of this market?
Ans: The Cyber Security Insurance Market is studied from 2021 to 2029.