Cyber insurance provides coverage against internet-based risks for businesses and individuals. It typically includes losses from network security breaches, loss of privacy, indemnification from lawsuits related to data breaches, and others. In addition, cyber insurance covers business' liability for a data breach involving sensitive customer information, such as account numbers, social security numbers, credit card numbers, and others. Cyber-attacks have an adverse impact on businesses such as declining customer base, disruption of business, regulatory fines, legal penalties & attorney fees, loss of intellectual property, and reputational damage. These attacks have escalated in terms of intensity and frequency, posing a threat to individuals, organizations, and countries, which have been driving the adoption of cyber insurance solutions.
Increased awareness about business interruption (BI) cyber risks and a rise in the number of mandatory legislations for data security in different end-users, such as banking, healthcare, and others, are some of the major factors fueling the market growth. In addition, growing adoption of cyber insurance products due to rising implications of cyber-attacks on public safety, economic prosperity, and government security has led to significant growth for the cyber insurance market in the recent years. However, lack of standardized policies and changes in perils are projected to limit the market growth. On the contrary, cyber insurance has an immense potential as it is largely an untapped market in the developing economies. Growing number of cyber-attacks in Asian countries such as China and India have led to adoption of cyber liability insurance products among various organizations, which is expected to provide lucrative opportunities for the cyber insurance market during the forecast period.
The cyber insurance market is segmented on the basis of company size, industry vertical, and region. In terms of company size, it is categorized into small and medium-sized companies and large companies. Based on industry vertical, it is classified into BFSI, IT & telecom, retail & e-commerce, healthcare, manufacturing, government & public sector, and others (utilities, energy, construction, and transportation). Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the global cyber insurance market analysis are Allianz, American International Group, Inc., Aon plc, AXA, Berkshire Hathway Inc., Lloyd’s of London Ltd., Lockton Companies, Inc., Munich Re, The Chubb Corporation, and Zurich. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Key benefits for stakeholders
Key market segments
By Company Size
By Industry vertical
By Region
KEY MARKET PLAYERS
Increased awareness about business interruption (BI) cyber risks and a rise in the number of mandatory legislations for data security in different end-users, such as banking, healthcare, and others, are some of the major factors fueling the market growth. In addition, growing adoption of cyber insurance products due to rising implications of cyber-attacks on public safety, economic prosperity, and government security has led to significant growth for the cyber insurance market in the recent years. However, lack of standardized policies and changes in perils are projected to limit the market growth. On the contrary, cyber insurance has an immense potential as it is largely an untapped market in the developing economies. Growing number of cyber-attacks in Asian countries such as China and India have led to adoption of cyber liability insurance products among various organizations, which is expected to provide lucrative opportunities for the cyber insurance market during the forecast period.
The cyber insurance market is segmented on the basis of company size, industry vertical, and region. In terms of company size, it is categorized into small and medium-sized companies and large companies. Based on industry vertical, it is classified into BFSI, IT & telecom, retail & e-commerce, healthcare, manufacturing, government & public sector, and others (utilities, energy, construction, and transportation). Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the global cyber insurance market analysis are Allianz, American International Group, Inc., Aon plc, AXA, Berkshire Hathway Inc., Lloyd’s of London Ltd., Lockton Companies, Inc., Munich Re, The Chubb Corporation, and Zurich. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Key benefits for stakeholders
- The study provides an in-depth analysis of the global cyber insurance market along with the current & future trends to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global cyber insurance market from 2019 to 2026 is provided to determine the market potential.
Key market segments
By Company Size
- Large Companies
- Small & Medium-sized Companies
By Industry vertical
- BFSI
- IT & Telecom
- Retail& E-commerce
- Healthcare
- Manufacturing
- Government & Public Sector
- Other
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
KEY MARKET PLAYERS
- Allianz
- American International Group, Inc.
- Aon plc
- AXA
- Berkshire Hathway Inc.
- Lloyd’s of London Ltd.
- Lockton Companies, Inc.
- Munich Re
- The Chubb Corporation
- Zurich
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CYBER INSURANCE MARKET, BY COMPANY SIZE
CHAPTER 5: CYBER INSURANCE MARKET, BY INDUSTRY VERTICAL
CHAPTER 6: CYBER INSURANCE MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
Executive Summary
According to the report titled, 'Cyber Insurance Market by Company Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019-2026,' the global market was valued at $4.8billion in 2018, and the cyber insurance market size is projected to reach $28.6 billion by 2026, growing at a CAGR of 24.9% from 2019 to 2026.Cyber insurance is widely used to help businesses to protect their valuable IT assets against cyber-attacks such as malware, ransom ware, phishing, distributed denial-of-service (DDoS) attacks, and others. The cyber insurance companies provide personalized products and services to mitigate specific risks across several end user industries, thereby becoming major cyber insurance market trends. Further, significant increase in cyber-attacks has led organizations to shift their focus on cyber security as well as cyber insurance; thereby acting as one of the major factors boosting the cyber insurance market growth.
Increased awareness about business interruption (BI) cyber risks and a rise in the number of m mandatory legislations for data cyber security in different end-users, such as banking, healthcare, and others, are some of the major factors fueling the market growth. In addition, growing adoption of cyber insurance products due to rising implications of cyber-attacks on public safety, economic prosperity, and government security has led to significant growth for the cyber insurance market in the recent years. However, lack of st standardized policies and changes in perils are projected to limit the market growth. On the contrary, cyber insurance has an immense potential as it is largely an untapped market in developing economies. Growing number of cyber-attacks in Asian countries such as China and India, have led to the adoption of cyber liability insurance products among various organization, which is expected to provide lucrative opportunities for the cyber insurance market during the forecast period.
On the basis of company size, the large enterprises segment dominated the cyber insurance industry in 2018 and is projected to maintain its dominance during the forecast period. The large companies in these industries incurred reputational losses, financial losses, and intellectual property losses due to cyber-attacks. As a result, these industries purchase cyber insurance policies for protection against cyber-attacks and other risks and are expected to grow at a significant CAGR during the forecast period.
The BFSI sector dominated the cyber insurance industry in 2018 and is projected to maintain its dominance during the forecast period, owing to growing incidences of data breaches in large volumes of customers data & employee information such as payment card, bank account & personal identification numbers, and other confidential details of credit card have led to the cyber insurance as focused areas for various organizations in the industry. Furthermore, the government & public sector is expected to grow at a significant CAGR during the forecast period, owing to an increase in cyber liabilities, data theft, identity fraud and cyber-attacks, which has left the cyber insurance coverage at the forefront of the corporate governance in public sector companies.
By region, the global cyber insurance market was dominated by North America in 2018 and is expected to maintain this trend during the forecast period. The major factors driving the growth of the market in this region include rising growth of malware events such as Wannacry and NotPetya in the U.S., that have increased awareness about the importance of cyber insurance. In addition, the country also introduced General Data Protection Regulation (GDPR) in May 2018, thereby accelerating strict regulatory environments regarding data protection with the help of cyber insurance.
According to PramodBorasi, Research Analyst, BFSI, “BFSI is expected to attain significant growth in the upcoming years, owing to large number of financial institutions and banks, whichare considered as the prime targets of cyber incidents.”
KEY FINDINGS OF THE STUDY
- By company size, the large companies segment led the cyber insurance market size in terms of revenue in 2018.
- By industry vertical, the BFSI segmented accounted for the highest cyber insurance market share in 2018.
- By region, North America generated the highest revenue in 2018.
The key players profiled in the cyber insurance market analysis are Allianz, American International Group, Inc., Aon plc, AXA, Berkshire Hathway Inc., Lloyd’s of London Ltd., Lockton Companies, Inc., Munich Re, The Chubb Corporation, and Zurich. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Companies Mentioned
- Allianz
- American International Group Inc.
- Aon plc
- AXA
- Berkshire Hathway Inc.
- Lloyd’s of London Ltd.
- Lockton Companies Inc.
- Munich Re
- The Chubb Corporation
- Zuric
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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