Cybersecurity Insurance Global Market Report 2024

Cybersecurity insurance is an insurance service that assists in reimbursing the financial losses brought on by cyber events and incidents. Organizations can obtain cybersecurity insurance as a way to help lower the financial risks involved with conducting business online. The insurance contract transfers part of the risk to the insurer in return for a monthly or quarterly payment.

The main types of insurance in cybersecurity insurance are packaged and stand-alone. The packages are used in an insurance policy that protects the policyholder against losses to their own losses. Insurance that offers a number of different coverages in combination usually refers to a policy offering both general liability and property insurance. The different insurance coverages include data breaches and cyber liability, which involve several components such as solutions and services. The different organization sizes include large enterprises and small and medium enterprises (SMEs). The various end users include technology providers and insurance providers.

The cybersecurity insurance market research report is one of a series of new reports that provides cybersecurity insurance market statistics, including cybersecurity insurance industry global market size, regional shares, competitors with a cybersecurity insurance market share, detailed cybersecurity insurance market segments, market trends and opportunities, and any further data you may need to thrive in the cybersecurity insurance industry. This anomaly detection market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The cybersecurity insurance market size has grown exponentially in recent years. It will grow from $14.63 billion in 2023 to $17.83 billion in 2024 at a compound annual growth rate (CAGR) of 21.9%. The growth in the historic period can be attributed to rise in cybersecurity threats and breaches, increasing awareness of cyber risks, regulatory compliance requirements, adoption of digital technologies, growth in data privacy concerns.

The cybersecurity insurance market size is expected to see exponential growth in the next few years. It will grow to $40.92 billion in 2028 at a compound annual growth rate (CAGR) of 23.1%. The growth in the forecast period can be attributed to expansion of cybersecurity insurance products, integration of artificial intelligence in risk assessment, growth in remote work and digital transformation, increased adoption by small and medium enterprises (smes), emphasis on incident response and recovery. Major trends in the forecast period include customized cybersecurity insurance policies, collaboration between insurers and cybersecurity firms, focus on employee training and security awareness, cybersecurity risk assessments and audits, dynamic pricing models based on cybersecurity posture.

Rising data security breaches are the key factor driving the growth of the cybersecurity insurance market going forward. A data breach is a situation in which information is taken from a system without the owner's knowledge or consent. Weak and forged identification is one of the easiest and most frequent reasons for data breaches. Data breaches are happening more often and with greater severity than ever before. Data breaches and other cybercrimes are becoming way too common, which is resulting in companies investing in cyber insurance to help them with the cost of procuring, restoring, and recreating data. For instance, in February 2022, according to the data breach quick view in the United States, there were 2,932 data breaches recorded in 2021 compared to 2,645 in 2020, a 10% increase. Therefore, the rising number of data security breaches is driving demand for the cybersecurity insurance market growth.

An increasing number of Internet of Things (IoT) devices is expected to boost the growth of the cybersecurity insurance market going forward. IoT devices refer to nonstandard computing devices that can connect to a network wirelessly and provide data. IoT devices produce substantial data, necessitating streamlined management. As the IoT landscape continues to expand, the associated cybersecurity risks and potential financial consequences become more pronounced, prompting organizations to seek insurance coverage as a proactive risk management strategy. For instance, in September 2021, according to the report published by IoT Analytics, a German-based market insights and strategic business intelligence company, the number of worldwide IoT connections increased by 8% to 12.2 billion active endpoints, a much lower rate than in prior years. By 2025, it is predicted that there will be more than 30 billion IoT connections, or nearly four IoT devices per person on average. Therefore, the increasing number of IoT devices is driving the growth of the cybersecurity insurance market.

Strategic partnerships and collaborations have emerged as the key trend gaining popularity in the cybersecurity insurance market. Major companies operating in the cybersecurity insurance sector are focused on collaborations and partnerships to strengthen their market position. For instance, in June 2021, Superscript, a UK-based insurance provider, partnered with CyberSmart, a UK-based specialist in cybersecurity for small businesses, to offer free cybersecurity insurance. Small businesses that complete the 'Cyber Essentials' certification on CyberSmart's website can easily subscribe to Superscript's cyber insurance in real-time without leaving CyberSmart's site. This partnership simplifies and accelerates the process of obtaining cyber insurance, making it more accessible for small businesses.

Major companies operating in the cybersecurity insurance market are developing and expanding their operations through strategic partnerships. A strategic partnership is a kind of formal relationship established between two or more companies or organizations to pursue mutual goals, objectives, or projects. For instance, In December 2021, Cloudflare, a US-based company that provides cloud-based services related to internet security and performance, unveiled a new cyber risk partnership program that involves collaborations with prominent cyber insurance carriers and incident response providers. This initiative is aimed at assisting Cloudflare's customers in reducing their exposure to cyber risks. As part of the program, Cloudflare customers may be eligible for reduced insurance premiums or more comprehensive coverage through their partnerships with insurance carriers. Furthermore, the program involves incident response partners who work alongside Cloudflare to rapidly mitigate cyberattacks when they occur, enhancing the overall cybersecurity posture of Cloudflare's clientele. This strategic program underscores the growing importance of cyber risk management and proactive security measures in the digital landscape. This program partnership involves a US-based cyber insurer, and incident response providers were CrowdStrike, Mandiant, and SecureWorks.

In March 2021, Wipro Limited, an India-based information technology company, acquired Capco for an amount of $1.45 billion. Through this acquisition, Wipro would become one of the end-to-end global consulting, technology, and transformation service providers to the banking and financial services sector. Clients would have access to a partner who can deliver integrated, bespoke solutions to support growth and meet their transformation objectives by combining Wipro's strategic design, digital transformation, cloud, cybersecurity, IT, and operations services capabilities with Capco's domain and consulting strengths. Capco is a UK-based technology and management consultancy company that provides cybersecurity insurance, specializes in driving digital transformation in the financial services industry, and has expertise in risk management, cyber technology, and regulatory compliance to manage cyber risk.

Major companies operating in the in the cybersecurity insurance market report are Allianz SE, American International Group Inc. , Aon PLC. , Arthur J. Gallagher & Co, The Travelers Companies Inc. , Axa S. A. , AXIS Capital Holdings Ltd. , Beazley Group. , Chubb Limited. , CNA Financial Corporation. , Fairfax Financial Holdings Ltd. , Liberty Mutual Insurance Group, Lloyd’s of London Ltd. , Lockton Companies Inc. , Munich Reinsurance Company, Endurance Specialty Holdings Ltd. , Zurich Insurance Group Ltd. , Tokio Marine Holdings Inc. , The Hartford Financial Services Group Inc. , Argo Group. , Aspen Insurance Holdings Ltd. , Berkshire Hathaway Specialty Insurance, United States Fire Insurance, Hiscox Inc. , Ironshore Inc. , Markel Group Inc. , Nationwide Mutual Insurance Company. , QBE Insurance Group Limited. , Sompo International Holdings Ltd. , Starr International Companies Inc. , Swiss Reinsurance Company Ltd. , CyberPolicy Inc. , AmTrust Financial Services Inc.

North America was the largest region in the cybersecurity insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cybersecurity insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the cybersecurity insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The cybersecurity insurance market includes revenues earned by entities by providing a cybersecurity insurance analytics platform, disaster recovery and business continuity, cybersecurity solutions, cyber risk and vulnerability assessments, cybersecurity resilience, consulting and advisory services, and security awareness training. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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