Code Supply Chain Insurance Global Market Report 2025

The code supply chain insurance market size has grown exponentially in recent years. It will grow from $1.5 billion in 2024 to $1.9 billion in 2025 at a compound annual growth rate (CAGR) of 26.6%. Growth in the historic period can be attributed to the rise in cyberattacks targeting software vendors, increasing reliance on open-source code, greater awareness of supply chain vulnerabilities, the adoption of digital risk management practices, and the expansion of cloud-based software ecosystems.

The code supply chain insurance market size is expected to see exponential growth in the next few years. It will grow to $4.84 billion in 2029 at a compound annual growth rate (CAGR) of 26.3%. Growth in the forecast period can be linked to rising demand for integrated cyber insurance, increased adoption of automated code analysis tools, growing investment in supply chain security startups, the expansion of risk transfer solutions for software ecosystems, and higher enterprise spending on cyber resilience. Major trends expected during the forecast period include the integration of artificial intelligence in risk detection, the emergence of real-time code supply chain monitoring, the rise of parametric cyber insurance models, stronger collaboration between insurers and cybersecurity firms, and the adoption of blockchain for verifying code integrity.

The rise in cyber threats is expected to drive growth in the code supply chain insurance market in the coming years. Cyber threats include any malicious attempts or potential dangers aimed at damaging, disrupting, or gaining unauthorized access to computer systems, networks, or digital data. The increase in cyber threats is largely fueled by expanding digital connectivity, as the widespread use of online platforms and connected devices introduces more vulnerabilities for malicious attacks. Code supply chain insurance mitigates these risks by providing financial protection and support against attacks or breaches originating from compromised third-party code and software dependencies. For example, in July 2025, Check Point Software Technologies Ltd., an Israel-based cybersecurity company, reported that the global average of weekly cyberattacks per organization rose to 1,984 in Q2 2025, representing a 21% increase from the same period in 2024 and a 58% rise compared to two years earlier. Consequently, the growing cyber threats are propelling growth in the code supply chain insurance market.

Key companies in the code supply chain insurance market are focusing on innovations such as secure integration platforms to improve operational efficiency, resilience, and risk management across interconnected insurance technology ecosystems. A secure integration platform is a cloud-based framework that enables standardized, protected connectivity between multiple stakeholders, reducing cybersecurity risks and operational fragmentation in technology-driven environments. For instance, in October 2025, DXC Technology, a U.S.-based global IT services provider, launched the DXC APEX (Assure Platform Ecosystem Exchange) Program. The program establishes a centralized hub offering certified, pre-built integrations among insurers, brokers, and Insurtech providers, simplifying interoperability and lowering integration costs. It also enhances security, accelerates adoption of emerging technologies, and supports digital transformation through AI-driven automation and compliance-enabled cloud services.

In July 2025, Zurich Insurance Group, a Switzerland-based multi-line insurer, acquired BOXX Insurance Inc. for an undisclosed amount. Through this acquisition, Zurich aims to expand its cyber protection capabilities by integrating BOXX’s digital-first and service-led cyber insurance solutions, enhancing coverage for retail and small- to medium-sized enterprise customers. BOXX Insurance Inc., based in Canada, provides cyber insurance and protection services for businesses, individuals, and families, helping them defend against cyber threats.

Major players in the code supply chain insurance market are AXA XL, Zurich Insurance Group, Lloyd’s of London, Chubb, Liberty Mutual Insurance, Tokio Marine Holdings, Swiss Re, Munich Re, Travelers Insurance, AIG (American International Group), Sompo International, Marsh McLennan, Allianz Global Corporate & Specialty, QBE Insurance Group, Markel Corporation, Arch Insurance Group, CNA Financial Corporation, Hiscox, Berkshire Hathaway Specialty Insurance, Beazley.

North America was the largest region in the code supply chain insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in code supply chain insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the code supply chain insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

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

Code supply chain insurance is a specialized form of cybersecurity insurance that protects organizations from financial losses caused by vulnerabilities, breaches, or disruptions within their software supply chain. It covers risks linked to compromised open-source libraries, third-party code dependencies, and malicious software integrations. This type of insurance helps organizations reduce potential damages by offering financial support for incident response, remediation, and recovery activities.

The key coverage types in code supply chain insurance include first-party coverage, third-party liability, business interruption, cyber risk, and others. First-party coverage refers to protection that reimburses an organization for its own direct losses resulting from disruptions, breaches, or damage within its software or code supply chain systems. The insurance serves small and medium-sized enterprises as well as large enterprises and is distributed through channels such as direct sales, brokers, online platforms, and others. End users include technology companies, software vendors, managed service providers, financial institutions, healthcare organizations, and others.

The code supply chain insurance market includes revenues earned by entities by providing services such as cyber risk assessment, vulnerability management, incident response, threat intelligence, code audit, penetration testing, compliance consulting, software bill of materials analysis, risk underwriting, policy management, claims handling, security monitoring, breach investigation, third-party risk management, data recovery, cloud security assessment. 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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