Market Definition:
The Global Cyber Insurance Market size was valued at USD 6.12 billion in 2019 and is predicted to reach USD 35.21 billion by 2030, with a CAGR of 17.1% from 2020-2030. Cyber insurance is a specialty insurance product that covers the financial risks associated with cybercrimes. It provides coverage in different areas such as extortion, data destruction, hacking, theft, denial of service, and other cybercrimes. It also helps the client in mitigating the investigation process of cyber-related security breach and similar mishaps. On the professional front, the cyber insurance products can be personalized as per the customer requirements.
According to the cyber security statistics for 2019 provided by the Cyber Defense Magazine, more than 8,854 cyber breaches were recorded between 2005 and 2018. The total cost of these breaching sums-up to billions of dollars. At global level, the cost of cyber-crimes is anticipated to cross USD 6 trillion by 2021. The soaring demand for efficient cyber security solutions further augments the growth of global cyber insurance market.
Market Dynamics and Trends:
Cyber-attacks adversely affect the reputation of an organization and reduces its customer base, which in turn lowers the business turnover. Cyber insurance helps the organization to cover financial loss, investigative expenses, criminal reward funds, and to recover post-incident public relations. Growing adoption of cyber insurance across different industry verticals is expected to propel the growth of global cyber insurance market throughout the forecast period.
Furthermore, the increasing cases of ransomware attacks, malware attacks, phishing activities, cyber thefts, cyber frauds, and others cybercrimes, augment the demand for effective cyber insurance policies that cover financial losses and partake in post-damage control; thereby supplementing the growth of cyber insurance market. However, lack of standardization, increasing number of cyber hackers, along with complex and fluctuating nature of cybercrimes is expected to adversely affect the growth of cyber insurance market players. On the other hand, increasing security concerns in private and public organizations, and untapped market opportunities offered by emerging economies, shall propagate the growth of global cyber insurance.
Market Segmentations and Scope of the Study:
The global cyber insurance market share has been analyzed based on company size, industry vertical and geography. Based on company size, the market is segmented into small & medium enterprise and large enterprise. Based on industry vertical, the market is divided into healthcare, retail, financial services (BFSI), Information Technology & Services and others. Geographic breakdown and analysis of each of the previously mentioned segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.
Geographical Analysis:
North America is expected to dominate the global cyber insurance market throughout the forecast period, accounting for the major market share. This is due to higher adoption of cyber insurance across various business enterprises, well established IT infrastructures, stringent corporate digital security standards, and presence of key service providers in this region.
Asia Pacific is expected to grow with the highest CAGR values in the global cyber insurance market throughout the forecast period, owing to increasing prevalence of multinational companies especially in developing economies, increasing incidences of cybercrimes at various industry verticals, as well as untapped market opportunities offered by emerging economies specifically India and China.
Competitive Landscape:
The cyber insurance market is highly competitive and consists of various market players including 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 among others. The key players are employing strategies such as new product launches, joint ventures, acquisition, technical collaboration, and capacity expansion, in-order to secure stronger position in the cyber insurance market.
In October 2019, Allianz Global Corporate & Specialty (AGCS), one of the major players of cyber insurance market, entered into a joint venture with Check Point Software Technologies, in-order to launch an initiative to improve the cyber risk management solution for enhancing resilience of businesses. The updated cyber insurance policy includes broader coverage and offers high level of security to the organizations.
In January 2020, Check Point Software Technologies Ltd., one of the major players of cyber insurance market launched its new ‘Global Partner Program’ for expanding partner capabilities, win new customer base, accelerate customer adoption of insurance policies, and achieve increased success in cloud security.
In April 2020, Chubb Corporation, one of the major players of cyber insurance market, in association with the Carnegie Mellon University, awarded a group of insurance professionals with COPE Insurance Certification Designations, giving them opportunity to be well-trained and achieve certification in cyber security risk management, and operations.
KEY MARKET SEGMENTS:
Global Cyber Insurance market - By Company Size
Global Cyber Insurance market - By Industry Vertical
Global Cyber Insurance market -By Geography
The Global Cyber Insurance Market size was valued at USD 6.12 billion in 2019 and is predicted to reach USD 35.21 billion by 2030, with a CAGR of 17.1% from 2020-2030. Cyber insurance is a specialty insurance product that covers the financial risks associated with cybercrimes. It provides coverage in different areas such as extortion, data destruction, hacking, theft, denial of service, and other cybercrimes. It also helps the client in mitigating the investigation process of cyber-related security breach and similar mishaps. On the professional front, the cyber insurance products can be personalized as per the customer requirements.
According to the cyber security statistics for 2019 provided by the Cyber Defense Magazine, more than 8,854 cyber breaches were recorded between 2005 and 2018. The total cost of these breaching sums-up to billions of dollars. At global level, the cost of cyber-crimes is anticipated to cross USD 6 trillion by 2021. The soaring demand for efficient cyber security solutions further augments the growth of global cyber insurance market.
Market Dynamics and Trends:
Cyber-attacks adversely affect the reputation of an organization and reduces its customer base, which in turn lowers the business turnover. Cyber insurance helps the organization to cover financial loss, investigative expenses, criminal reward funds, and to recover post-incident public relations. Growing adoption of cyber insurance across different industry verticals is expected to propel the growth of global cyber insurance market throughout the forecast period.
Furthermore, the increasing cases of ransomware attacks, malware attacks, phishing activities, cyber thefts, cyber frauds, and others cybercrimes, augment the demand for effective cyber insurance policies that cover financial losses and partake in post-damage control; thereby supplementing the growth of cyber insurance market. However, lack of standardization, increasing number of cyber hackers, along with complex and fluctuating nature of cybercrimes is expected to adversely affect the growth of cyber insurance market players. On the other hand, increasing security concerns in private and public organizations, and untapped market opportunities offered by emerging economies, shall propagate the growth of global cyber insurance.
Market Segmentations and Scope of the Study:
The global cyber insurance market share has been analyzed based on company size, industry vertical and geography. Based on company size, the market is segmented into small & medium enterprise and large enterprise. Based on industry vertical, the market is divided into healthcare, retail, financial services (BFSI), Information Technology & Services and others. Geographic breakdown and analysis of each of the previously mentioned segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.
Geographical Analysis:
North America is expected to dominate the global cyber insurance market throughout the forecast period, accounting for the major market share. This is due to higher adoption of cyber insurance across various business enterprises, well established IT infrastructures, stringent corporate digital security standards, and presence of key service providers in this region.
Asia Pacific is expected to grow with the highest CAGR values in the global cyber insurance market throughout the forecast period, owing to increasing prevalence of multinational companies especially in developing economies, increasing incidences of cybercrimes at various industry verticals, as well as untapped market opportunities offered by emerging economies specifically India and China.
Competitive Landscape:
The cyber insurance market is highly competitive and consists of various market players including 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 among others. The key players are employing strategies such as new product launches, joint ventures, acquisition, technical collaboration, and capacity expansion, in-order to secure stronger position in the cyber insurance market.
In October 2019, Allianz Global Corporate & Specialty (AGCS), one of the major players of cyber insurance market, entered into a joint venture with Check Point Software Technologies, in-order to launch an initiative to improve the cyber risk management solution for enhancing resilience of businesses. The updated cyber insurance policy includes broader coverage and offers high level of security to the organizations.
In January 2020, Check Point Software Technologies Ltd., one of the major players of cyber insurance market launched its new ‘Global Partner Program’ for expanding partner capabilities, win new customer base, accelerate customer adoption of insurance policies, and achieve increased success in cloud security.
In April 2020, Chubb Corporation, one of the major players of cyber insurance market, in association with the Carnegie Mellon University, awarded a group of insurance professionals with COPE Insurance Certification Designations, giving them opportunity to be well-trained and achieve certification in cyber security risk management, and operations.
KEY MARKET SEGMENTS:
Global Cyber Insurance market - By Company Size
- Small and Medium Enterprise
- Large Enterprise
Global Cyber Insurance market - By Industry Vertical
- Healthcare
- Retail
- Financial Services (BFSI)
- Information Technology and Services
- Others
Global Cyber Insurance market -By Geography
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
- Asia-Pacific
- Australia
- China
- India
- Japan
- Rest of Asia-Pacific
- RoW
- Latin America
- Middle East
- Africa
Table of Contents
1. Introduction
2. Market Snapshot, 2019-2030 Million USD
4. Market Dynamics
5. Global Cyber Insurance Market, by Company Size
6. Global Cyber Insurance Market, by Industry Vertical
7. Global Cyber Insurance Market, by Region
8. Company Profiles
Executive Summary
Cyber Insurance: Global Market Size, Trends, Competitive, Historical & Forecast Analysis, 2020 - 2030. The increasing cases of ransomware attacks, cyber frauds, malware attacks, cyber thefts, and others cybercrime activities are expected to drive the cyber insurance market growth.Cyber insurance is a specialty insurance product that covers the financial risks associated with cybercrimes. It provides coverage in different areas such as extortion, data destruction, hacking, theft, denial of service, and other cybercrimes. It also helps the client in mitigating the investigation process of cyber-related security breach and similar mishaps. Cyber-attacks adversely affect the reputation of an organization and reduces its customer base, which in turn lowers the business turnover. Cyber insurance helps the organization to cover financial loss, investigative expenses, criminal reward funds, and to recover post-incident public relations. Growing adoption of cyber insurance across different industry verticals is expected to propel the growth of global cyber insurance market throughout the forecast period.
The global cyber insurance market share has been analyzed based on company size, industry vertical and geography. Based on company size, the market is segmented into small & medium enterprise and large enterprise. Based on industry vertical, the market is divided into healthcare, retail, financial services (BFSI), Information Technology & Services and others. Geographic breakdown and analysis of each of the previously mentioned segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.
Companies Mentioned
A selection of companies mentioned in this report includes:
- 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
