NEW YORK, March 11, 2024 /PRNewswire/ — The global cyber insurance market size is estimated to grow by USD 42.81 billion from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 35.92% during the forecast period. The escalating threat of cyber-attacks has intensified demand within the corporate landscape. With increasing digital reliance, safeguarding against potential financial and reputational damage stemming from cybercrime has become imperative. Both businesses and individuals are actively seeking coverage to mitigate rising risks. Beyond financial advantages, there’s a growing recognition of the reputational benefits associated with comprehensive coverage. This trend is driving market expansion, addressing the aftermath of cyber-attacks and providing vital financial protection. Companies are adopting diverse strategies such as strategic alliances, partnerships, mergers, acquisitions, and geographical expansion to bolster their market presence. American International Group Inc. stands out by offering innovative cyber insurance solutions, enabling businesses to effectively minimize risk exposure and proactively address silent cyber threats, thereby reducing accumulation risks systematically.
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 35.92% |
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Market growth 2023-2027 |
USD 42.81 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
30.88 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 57% |
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Key countries |
US, Canada, China, Germany, and UK |
- The lack of standardization is identified as one of the major challenges affecting the growth of the market.
Segment Overview
Technavio has segmented the market based on type (large enterprises and small and medium-sized enterprises), solution (standalone and packaged), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
- The market growth in the large enterprises segment will be significant during the forecast period. Large enterprises are at higher risk of cyber attacks. Hence, they adopt cyber insurance to mitigate the financial impact of security breaches. The high demand from this segment has driven vendors to offer tailored packages to meet the needs of large enterprises, including high coverage limits, comprehensive coverage, specialized services, and global coverage. All these factors are supporting the growth of the segment.
Geography Overview
By geography, the global cyber insurance market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global cyber insurance market.
- North America will account for 57% of the market growth during the forecast period. The increasing awareness of cyber insurance among individuals and businesses is driving the growth of the regional market. Also, factors such as the high adoption of technologies, the rise in online transactions, and the growth in the e-commerce industry are positively influencing the cyber insurance market in North America.
Insights on the market contribution of various segments including country and region wise, historic period (2017 to 2021), and forecast market size (2023 to 2027) – Download a Sample Report
Key Companies
The global cyber insurance market is fragmented. Key vendors in the market have a strong reputation and brand recognition and are well-established in the insurance industry. The competitive landscape is highly dynamic as vendors are actively seeking to differentiate themselves through the coverage offered, the level of customer service provided, and the pricing of their products. With new players entering the market and existing players expanding their offerings, the competition is expected to increase during the forecast period. Some of the key vendors covered in the report include:
- Aon plc – The company offers solutions for cyber insurance which allows organizations to analyze the relationship between risk, reward and the cost of mitigation and also prompt an evaluation of potential consequences by using statistical modeling to assess different damage scenarios.
- At Bay Inc. – The company offers solutions for cyber insurance to help by alleviating the immediate risk based on realistic insights from automated assessments.
- AXA Group – The company offers solutions for cyber insurance that help to prevent and protect insured entities from evolving cyber risks through technology-driven interventions.
- Beazley Plc – The company offers solutions for cyber insurance that helps in providing more than protection coverage and support response and recovery plans, according to the report Cyber Risk Management.
Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!
Analyst Review
In the era of rapid digital transformation, where businesses are embracing emerging technologies to stay ahead, it’s essential to address the underlying assumptions regarding cybersecurity. As organizations increasingly rely on digital technologies to streamline operations and enhance customer experiences, they face a myriad of cyber threats ranging from cyberattacks to sophisticated cybercrimes.
Acknowledging these risks, companies are allocating substantial resources towards bolstering their cybersecurity solutions. However, despite these efforts, breaches can still occur, prompting the need for a safety net. This is where cybersecurity insurance comes into play.
Cybersecurity insurance acts as a financial safeguard, mitigating the impact of cyber incidents. It covers a spectrum of expenses, including investigation expenses and cybersecurity expenditure incurred in response to an attack. Furthermore, it provides a safety net against potential liabilities and damages arising from data breaches or other cyber incidents.
The cybersecurity insurance market ecosystem encompasses various stakeholders, including insurers, reinsurers, brokers, and policyholders. Insurers offer a range of cybersecurity insurance solutions and services, tailored to the unique needs of different industries and organizations.
To effectively navigate this landscape, insurers are leveraging advanced cybersecurity insurance analytics platforms. These platforms harness data analytics to assess risks, determine premiums, and optimize coverage. By utilizing cybersecurity insurance analytics, insurers can offer more accurate pricing and enhance underwriting processes, ultimately benefiting both insurers and policyholders.
In recent years, the demand for cybersecurity insurance has surged, driven by a surge in cyber threats and regulatory pressures. Consequently, the cybersecurity insurance market has witnessed significant growth, with insurers developing innovative policies to address evolving cyber risks.
Moreover, as organizations recognize the importance of mitigating cyber risks, many are making cybersecurity insurance a fundamental component of their risk management strategies. This trend is further bolstered by the emergence of cybersecurity insurance as a regulatory requirement in certain industries.
In conclusion, as the digital landscape continues to evolve, the importance of cybersecurity insurance cannot be overstated. By providing financial protection against cyber incidents, insurers play a crucial role in safeguarding businesses against the ever-present threat of cybercrime.
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Market Overview
In the digital transformation, where businesses harness the power of emerging tech to thrive, one mustn’t overlook the inherent assumptions about security. As organizations navigate this landscape, cybersecurity solutions become paramount, guarding against evolving threats. Concurrently, the cybersecurity expenditure rises, reflecting the commitment to fortify digital infrastructures. Amidst this backdrop, cybersecurity insurance policies emerge as a vital safeguard. These policies offer financial protection against cyber risks, bolstering resilience in the face of potential breaches. As the cyber threat landscape evolves, the importance of such insurance grows, ensuring businesses can mitigate risks effectively and continue their digital journey with confidence.
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Related Reports:
- The reinsurance market size is expected to increase by USD 328.62 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 10.1%. The market is segmented by product (non-life reinsurance and life insurance) and geography (Europe, APAC, North America, Middle East and Africa, and South America).
- The insurance brokerage market size is expected to increase by USD 101.94 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 6.93%. The market is segmented by type (non-life insurance and life insurance) and geography (North America, Europe, APAC, South America, and the Middle East and Africa).
Table of contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Solution
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix
About US
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
