Prompt Injection Attack Loss Insurance Global Market Report 2025

The prompt injection attack loss insurance market size has grown exponentially in recent years. It will grow from $1.24 billion in 2024 to $1.59 billion in 2025 at a compound annual growth rate (CAGR) of 28.6%. The growth in the historic period can be linked to increasing cyberattacks on artificial intelligence systems, rising adoption of machine learning applications, growing reliance on automated decision-making tools, expanding digital transformation across industries, and increasing awareness of the benefits of cyber insurance.

The prompt injection attack loss insurance market size is expected to see exponential growth in the next few years. It will grow to $4.32 billion in 2029 at a compound annual growth rate (CAGR) of 28.3%. The growth in the forecast period can be driven by the expanding integration of artificial intelligence in business operations, rising demand for advanced cyber protection solutions, increasing regulatory focus on AI risk management, broader adoption of generative artificial intelligence tools, and growing awareness of prompt injection attack vulnerabilities. Major trends in the forecast period include advancements in AI-driven threat detection technologies, the development of specialized tools for assessing prompt injection risks, innovations in cyber insurance product design, increasing research and development in AI security, and the emergence of real-time monitoring and response systems.

The increasing adoption of artificial intelligence (AI) is expected to drive the growth of the prompt injection attack loss insurance market moving forward. Artificial intelligence (AI) refers to the simulation of human intelligence processes by machines, particularly computer systems, designed to perform tasks such as learning, reasoning, problem-solving, perception, and language understanding. The rising adoption of AI is due to its ability to automate complex tasks and improve decision-making efficiency across industries. As AI systems become more integrated into business operations, exposure to AI-specific security vulnerabilities, such as prompt injection attacks, has increased, leading to a greater need for protection. Prompt injection attack loss insurance is a specialized form of AI risk insurance that protects organizations from financial losses resulting from malicious prompt manipulation, unauthorized data exposure, or system compromise in AI models. For example, according to the 2025 AI Index Report from the Stanford Institute for Human-Centered Artificial Intelligence (HAI), a US-based research institute, 78% of organizations used AI in 2024, up from 55% the previous year. Therefore, the growing adoption of artificial intelligence (AI) is driving the growth of the prompt injection attack loss insurance market.

The increasing digital transformation in financial services is expected to drive the growth of the prompt injection attack loss insurance market moving forward. Digital transformation in financial services refers to the strategic adoption of digital technologies to modernize and automate banking, payments, and investment operations, making them faster, more efficient, and accessible through digital and mobile platforms. This transformation is accelerating due to the rising demand for convenient, real-time access to financial solutions and the integration of AI-driven tools to improve efficiency and decision-making. Prompt injection attack loss insurance is emerging as a safeguard for AI-driven financial systems, protecting organizations from potential financial and data losses caused by malicious prompt manipulations. For example, in July 2024, according to the European Central Bank, a Germany-based central bank for the euro system, the number of contactless card payments in the second half of 2023 increased by 16%, reaching 23.2 billion compared to the same period in 2022. Therefore, the increasing digital transformation of financial services is fueling the growth of the prompt injection attack loss insurance market.

In August 2025, SentinelOne, a US-based cybersecurity company, acquired Prompt Security for an undisclosed amount. With this acquisition, SentinelOne aims to strengthen its generative AI (GenAI) and agent security strategy by integrating real-time AI visibility, data protection, and prompt injection prevention capabilities into its platform, allowing enterprises to securely adopt AI technologies at scale. Prompt Security is an Israel-based software company that specializes in providing cyber insurance, including prompt injection attack loss insurance.

Major players in the prompt injection attack loss insurance market are Allianz Global Corporate & Specialty, Zurich Insurance Group, Liberty Mutual Insurance, Chubb Limited, Tokio Marine HCC, Swiss Re, Munich Re, Sompo International, QBE Insurance Group, Markel Corporation, CNA Financial Corporation, Arthur J. Gallagher & Co., Willis Towers Watson, AXA XL, Hiscox Ltd, Berkshire Hathaway Specialty Insurance, Beazley PLC, Chaucer Group, SentinelOne, Cowbell Cyber.

North America was the largest region in the prompt injection attack loss insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in prompt injection attack loss insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the prompt injection attack loss 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 prompt injection attack loss insurance market research report is one of a series of new reports that provides prompt injection attack loss insurance market statistics, including the prompt injection attack loss insurance industry global market size, regional shares, competitors with the prompt injection attack loss insurance market share, detailed prompt injection attack loss insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the prompt injection attack loss insurance industry. This prompt injection attack loss insurance 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.

Prompt injection attack loss insurance refers to a type of cyber insurance that safeguards organizations against financial, reputational, or operational losses resulting from prompt injection attacks targeting AI systems. These attacks occur when malicious inputs alter an AI model’s behavior, potentially causing data exposure, system misuse, or service disruptions. The insurance covers expenses related to such incidents, providing financial protection against the distinctive risks associated with AI manipulation.

The main coverage types in prompt injection attack loss insurance include first-party coverage, third-party liability, business interruption, data breach, and others. First-party coverage protects organizations from direct losses arising from a cyber incident or attack. The insurance is designed for businesses of all sizes, including small and medium enterprises as well as large enterprises, and is distributed through channels such as direct sales, brokers or agents, online platforms, and others. Key end users operate across sectors such as BFSI (banking, financial services, and insurance), healthcare, information and technology (IT) and telecommunications, retail, government, and additional industries.

The prompt injection attack loss insurance market consists of revenues earned by entities by providing services such as risk assessment, incident response coverage, financial loss compensation, cybersecurity consulting, AI model protection, and post-attack recovery support. 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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