Cyber Insurance Market Size to grow by USD 74620.3 million between 2024-2028
According to a research report “ Cyber Insurance Market” by Type (Large enterprises, Small and medium-sized enterprises) Solution (Standalone, Packaged) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 74620.3 million, at a CAGR of 42.36% during the forecast period. The burgeoning advancements in 5G technology hardware research and development are driving an unprecedented digital transformation across industries. This shift towards increased connectivity has resulted in a surge in the utilization of digital services and the Internet, creating a fertile ground for cybercriminals to exploit. Consequently, the global cyber insurance market has experienced remarkable growth, as individuals and businesses seek to mitigate the potential financial fallout of cyber-attacks. With the proliferation of Internet of Things (IoT) devices, cloud-based services, and mobile applications, the cyber risk landscape is expanding exponentially. The digital economy's reliance on the Internet for transactions, data management, and financial operations further amplifies the importance of robust cybersecurity measures and insurance coverage.
Browse market data tables, figures, and in-depth TOC on “Cyber Insurance Market” by Type (Large enterprises, Small and medium-sized enterprises) Solution (Standalone, Packaged) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Type, the Large enterprises segment is projected to dominate the market size in 2024
Cyber insurance serves as a specialized risk management solution, offering companies protection against financial losses resulting from cyber threats. Coverage encompasses various expenses incurred following a cyber-attack, including the cost of notifying affected parties and providing credit monitoring services, as well as the expenses associated with investigation and remediation processes. These costs can be substantial, making cyber insurance an essential component of a comprehensive risk management strategy.
By Solution, Standalone segment is expected to hold the largest market size for the year 2024
In today's digital business landscape, large enterprises are increasingly vulnerable to cyber-attacks due to their expansive digital footprint, intricate IT infrastructure, and the vast amount of sensitive data they manage. To mitigate the potential financial repercussions of a cyber breach, many large organizations opt for cyber insurance. These tailored insurance solutions offer extensive coverage and additional services, such as risk management and breach response, to help mitigate potential losses. Key features for large enterprises may include higher coverage limits, customizable policy terms, and specialized expertise to address the unique risks and complexities associated with their industry and organizational size.
North America is forecasted to hold the largest market size by region in 2024
The cyber insurance market is experiencing significant growth due to the increasing number of cyber threats and data breaches. Businesses are recognizing the importance of mitigating cyber risks and protecting their digital assets. Cyber insurance policies provide coverage for losses resulting from cyber attacks, data breaches, and other cyber risks. These policies offer essential risk management tools, including incident response services and cybersecurity consulting, to help businesses minimize the impact of cyber incidents. The global cyber insurance market is projected to reach USD20.4 billion by 2025, reflecting the growing demand for cyber risk protection.
The Cyber Insurance Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Cyber Insurance market is experiencing significant growth as businesses of all sizes recognize the importance of protecting themselves against the increasing number of cyberattacks. Companies like Beazley, Howden, and Microsoft are leading the way in providing Cyber Insurance solutions, utilizing innovative platforms such as Cyber ILS (Insurance Linked Securities) to spread risk and manage exposures. With the rise of remote working and IoT devices, threats like IoT malware and SonicWall Cyber Threats have become more prevalent. According to Cybersecurity Ventures, there will be 3.5 million cybersecurity job openings globally by 2021. Large enterprises are investing in IT infrastructure, information policies, and information governance to mitigate risks. Virtual Private Networks (VPNs) have become essential for secure remote working, but they also introduce new vulnerabilities. Cyber criminals are targeting cloud computing and the Internet of Things with sophisticated attacks. Symantec's Global Cyber Survey reports that 64% of organizations experienced web-based attacks in 2020. Reinsurers like Chainalysis are partnering with insurers to provide advanced threat intelligence and risk assessment services. As cyber threats continue to evolve, the Cyber Insurance market will remain a critical component of IT and business strategy.
Market Research Overview
The Cyber Insurance Market is a critical segment of the risk management industry, providing liability and first-party coverage for cyberattacks, data breaches, and other cyber threats. Companies like Beazley, Microsoft, and Howden are major players in this market. Cyber Insurance Linked Securities (Cyber ILS) and Cyber Catastrophe Bonds offer additional financial protection against large-scale cyber risks. Microsoft, SonicWall Capture Labs, and Symantec report an increase in IoT malware, ransomware threats, phishing attacks, and mail spam from cybercriminals. Healthcare and large enterprises are particularly vulnerable to ransomware attacks due to data collection concerns and the value of their information. Premium hikes are a growing concern in the cyber insurance market, driven by the increasing frequency and sophistication of cyberattacks. Munich Re experts warn of the risks posed by hackers targeting cryptocurrency and crypto ownership, as well as the potential for disinformation and Gen AI in cyber threats. The WEF's Global Cyber Survey reveals that operational technology, cloud computing, IT infrastructure, and the Internet of Things are key areas of concern for information governance and cybersecurity. Remote working and virtual private networks have also increased the risk of internet-based attacks. Ransomware-as-a-Service and the use of artificial intelligence by cybercriminals add to the complexity of the cyber threat landscape. Chainalysis and other crypto insurance services offer protection against these risks. The Board of Management, including Stefan Golling of WormGPT and large language models like ChatGPT, must stay informed of these trends to ensure robust cybersecurity policies and IT infrastructure.
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