Cybersecurity Insurance Market
PUBLISHED: 2023 ID: SMRC22581
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Cybersecurity Insurance Market

Cybersecurity Insurance Market Forecasts to 2028 - Global Analysis By Component (Solution, Service and Other Components), Insurance Coverage (Data Breach and Cyber Liability), Insurance Type (Packaged and Stand-Alone), Organization Size (Large Enterprises and SMEs), End User (Technology Providers, Insurance Providers and Other End Users), End User and By Geography

4.3 (35 reviews)
4.3 (35 reviews)
Published: 2023 ID: SMRC22581

This report covers the impact of COVID-19 on this global market
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Years Covered

2020-2028

Estimated Year Value (2022)

US $11.9 BN

Projected Year Value (2028)

US $38.4 BN

CAGR (2022 - 2028)

21.6%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

North America

Highest Growing Market

Europe


According to Stratistics MRC, the Global Cybersecurity Insurance Market is accounted for $11.9 billion in 2022 and is expected to reach $38.4 billion by 2028 growing at a CAGR of 21.6% during the forecast period. Solutions for cyber insurance help businesses reduce the risk of cyberthreat activity like data breaches and cyberattacks. The expense of internet-based attacks on information governance, IT infrastructure, and information policy, which frequently are not covered by conventional insurance products and commercial liability plans, are shielded from by this measure. Businesses are implementing cyber insurance coverage as a result of the rising data breaches and cybersecurity concerns.

According to the Nuspire threat report, there were 26,156,165 exploitation events,1,597,858 malware events, and 1,620,910 Botnets events in 2020.



Market Dynamics:

Driver:

Surge in mandatory cybersecurity regulations and legislations regarding cybersecurity

Many steps have been taken by law enforcement organisations and governmental regulatory entities to improve data security and protection. Covid19 has made policyholders, brokers, insurers, and agents aware of the necessity for a cybersecurity insurance coverage. For instance, the California Assembly has presented a bill that would mandate cybersecurity insurance for all state contractors who handle regulated and protected personal information. The expansion of data privacy laws, such as the Health Insurance Portability and Accountability Act (HIPAA) in the US, the global Payment Card Industry Data Security Standard (PCI DSS), and the General Data Protection Regulation (GDPR) of the European Union (EU), is motivating insurance companies to prioritise cybersecurity insurance measures. The rate of cyberattacks has dramatically increased as a result of rising digitalization, particularly during the COVID-19 epidemic. So, it is anticipated that the adoption of the cybersecurity insurance industry in the future will be driven by complicated governance needs and regulations in data security.

Restraint:

High Premium Cost to Hamper Market Growth

With protection from cyberthreats and crimes, cyber insurance benefits various businesses, driving up demand for insurance coverage. Nonetheless, the market faces issues with the high premium insurance policy cost. The insurance firms' increase in the cost of policies is impeding both their renewal and continuation. As prices rise, corporations like American International Group Inc. are raising premium rates by 30% and lowering coverage limitations. Small and medium-sized businesses (SMEs) with limited resources are hesitant to invest more in security insurance. It follows that high price will likely impede market expansion.

Opportunity:

Adoption of artificial intelligence AI and blockchain technology for risk analytics

Among the most recent hot technologies, AI and blockchain are predicted to give risk analytics solutions increased capabilities and offer up new business opportunities. These technologies' integration with risk analytics programmes would help cybersecurity insurance companies with some of their most pressing problems. The development of modern technology allows for quicker transactions and settlements, which help financial institutions and their customers execute transactions and settlements more quickly while also doing away with the need for intermediate fees. In order to analyse claims, manage reserves, and provide policy coverage, risk analytics solutions are crucial. In order to quickly analyse data and produce insights, a number of suppliers have started combining cutting-edge methodologies like statistical modelling, image processing, and machine learning (ML).

Threat:

Despite soaring cybersecurity risks, cyber insurers grapple to gain traction

Insurance companies struggle to sell stand-alone cybersecurity insurance products despite the surge in security events. Despite the growth in security and ransomware events, mid-sized businesses are sluggish to purchase stand-alone cybersecurity insurance coverage. Cyber hazards are the top issue for risk managers in both SMEs and large companies in the United States, according to the Allianz Risk Barometer survey. The market for cybersecurity insurance is being constrained by a number of problems, including high pricing, limited coverage limits, complicated coverage terms, and a lack of consumer knowledge of these plans.

Covid-19 Impact

The pandemic has forced people and companies to adopt remote working and has hastened the digitalization of company processes. Enterprise Virtual Private Network (VPN) servers are now required by businesses as more workers choose to work from home. Because of this, cybercriminals all around the world recognised opportunities to profit from the situation. Because hackers are utilising this issue as a lure to imitate brands and trick employees, the pandemic period saw an increase in mail spam, ransomware attacks, and phishing attempts. Both large and small businesses can obtain complete cyber coverage through insurance policies in the case of an attack or breach. Most cyber insurance policies offer a wide variety of coverage that is pertinent to the present situation.

The standalone segment is expected to be the largest during the forecast period

The standalone segment is estimated to have a lucrative growth, due to its complete cover policy. An organisation is shielded from legal action brought about by security or privacy breaches that claim a failure to protect sensitive information through a standalone type of insurance. Moreover, standalone policies protect against a variety of asset risks, such as business interruption, data loss/destruction, and money transfer loss.

The BFSI segment is expected to have the highest CAGR during the forecast period

The BFSI segment is anticipated to witness the fastest CAGR growth during the forecast period. Concerns about cybersecurity are likely to be sparked by the growing digitalization of businesses, the expansion of customer-sensitive data, the use of mobile applications, and online banking. The banking sector is likely to be a popular target for hackers since it retains such a vast amount of client data. The BFSI sector's need for cybersecurity insurance will likely rise as a result.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to this region's stable and well-established economies, which enable it to make large investments in research and development (R&D) operations, new technologies for the cybersecurity insurance industry are being developed. The majority of leading players in the cybersecurity insurance market are anticipated to be the main drivers of the market's growth in this area.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the altering insurance regulatory laws that raise the demand for these insurance services are to blame for the regional expansion. According to data by Wavestone, Marsh, and the legal firm CMS, insurance claims are increasing across Europe faster than the number of policies, as enterprises' use of digital technology leaves them open to criminal assaults.



Key players in the market

Some of the key players profiled in the Cybersecurity Insurance Market include CNA Financial Corporation, Travelers Indemnity Company, Chubb, Zurich Insurance, The Hanover Insurance, Inc., AXIS Capital Holdings Limited, American International Group, Inc., Beazley Group, AXA XL, XL Group Ltd, BCS Financial Corporation, Berkshire Hathaway Inc., Aon PLC, Bin Insurer Holding LLC, Lockton Companies Inc., SecurityScorecard Inc., Allianz Global Corporate & Specialty and Munich Re Group.

Key Developments:

In October 2022, AXA XL launched an incident response team in the Americas. The Cyber Incident Response team determines commitment to the clients and helps them before, during, and after cyber incident.

In July 2022, AXA XL announced cyber insurance roles and regional management appointments in the U.S. These roles help to focus on the company's growth strategy and discover innovative methods to address complicated cyber & technology risks.

In September 2021, Zurich Insurance Group joined Toronto-based Insurtech BOXX Insurance. This collaboration provided fully integrated insurance and cyber security solution for SMEs, families, and consumers.

In September 2021, BlinkSM by Chubb and USAA Insurance Agency collaborated to offer personalized cyber protection to families and USAA members. The standalone insurance policy includes expenditures related to a personal cyber event, including fraudulent wire transfers, identity theft, ransomware extortion, and cyberbullying.

In March 2021, CNA launched CNA CyberPrep. It is an upbeat program of cyber risk services intended to help organizations take a complete approach to cyber threats and help CNA cyber policyholders identify, mitigate, and respond to threats.

Components Covered:
• Solution
• Service
• Other Components

Insurance Coverage Covered:
• Data Breach
• Cyber Liability

Insurance Types Covered:
• Packaged
• Stand-Alone

Organization Sizes Covered:
• Large Enterprises
• SMEs

End Users Covered:
• Technology Providers
• Insurance Providers
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Cybersecurity Insurance Market, By Component
5.1 Introduction
5.2 Solution
5.2.1 Cybersecurity Insurance Analytics Platform
5.2.2 Disaster Recovery and Business Continuity
5.2.3 Cybersecurity Solutions
5.2.3.1 Cyber Risk and Vulnerability Assessment
5.2.3.2 Cybersecurity Resilience
5.3 Service
5.3.1 Consulting/Advisory
5.3.2 Security Awareness Training
5.3.3 Other Services
5.4 Other Components

6 Global Cybersecurity Insurance Market, By Insurance Coverage
6.1 Introduction
6.2 Data Breach
6.2.1 Data Loss
6.2.2 Randsomware Attacks
6.2.3 Denial of Service and Down-Time
6.3 Cyber Liability
6.3.1 Type
6.3.1.1 Data Protection and Privacy Costs
6.3.1.2 Non-Compliance Penality
6.3.1.3 Brand and Related Intellectual Property Protection
6.3.1.4 Others
6.3.2 Source/Target
6.3.2.1 Internal
6.3.2.2 External

7 Global Cybersecurity Insurance Market, By Insurance Type
7.1 Introduction
7.2 Packaged
7.3 Stand-Alone

8 Global Cybersecurity Insurance Market, By Organization Size
8.1 Introduction
8.2 Large Enterprises
8.3 SMEs

9 Global Cybersecurity Insurance Market, By End User
9.1 Introduction
9.2 Technology Providers
9.2.1 Third-Party Administrators, Brokers, and Consultancies
9.2.2 Insurance Companies
9.2.3 Government Agencies
9.3 Insurance Providers
9.3.1 Financial Services
9.3.2 IT and ITES
9.3.3 Healthcare and Life Science
9.3.4 Telecom
9.3.5 BFSI
9.3.6 Retail and Ecommerce
9.3.7 Travel, Tourism, and Hospitality
9.4 Other End Users

10 Global Cybersecurity Insurance Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa

11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies

12 Company Profiling
12.1 CNA Financial Corporation
12.2 Travelers Indemnity Company
12.3 Chubb
12.4 Zurich Insurance
12.5 The Hanover Insurance, Inc.
12.6 AXIS Capital Holdings Limited
12.7 American International Group, Inc.
12.8 Beazley Group
12.9 AXA XL
12.10 XL Group Ltd
12.11 BCS Financial Corporation
12.12 Berkshire Hathaway Inc.
12.13 Aon PLC
12.14 Bin Insurer Holding LLC
12.15 Lockton Companies Inc.
12.16 SecurityScorecard Inc.
12.17 Allianz Global Corporate & Specialty
12.18 Munich Re Group

List of Tables
1 Global Cybersecurity Insurance Market Outlook, By Region (2020-2028) ($MN)
2 Global Cybersecurity Insurance Market Outlook, By Component (2020-2028) ($MN)
3 Global Cybersecurity Insurance Market Outlook, By Solution (2020-2028) ($MN)
4 Global Cybersecurity Insurance Market Outlook, By Cybersecurity Insurance Analytics Platform (2020-2028) ($MN)
5 Global Cybersecurity Insurance Market Outlook, By Disaster Recovery and Business Continuity (2020-2028) ($MN)
6 Global Cybersecurity Insurance Market Outlook, By Cybersecurity Solutions (2020-2028) ($MN)
7 Global Cybersecurity Insurance Market Outlook, By Cyber Risk and Vulnerability Assessment (2020-2028) ($MN)
8 Global Cybersecurity Insurance Market Outlook, By Cybersecurity Resilience (2020-2028) ($MN)
9 Global Cybersecurity Insurance Market Outlook, By Service (2020-2028) ($MN)
10 Global Cybersecurity Insurance Market Outlook, By Consulting/Advisory (2020-2028) ($MN)
11 Global Cybersecurity Insurance Market Outlook, By Security Awareness Training (2020-2028) ($MN)
12 Global Cybersecurity Insurance Market Outlook, By Other Services (2020-2028) ($MN)
13 Global Cybersecurity Insurance Market Outlook, By Other Components (2020-2028) ($MN)
14 Global Cybersecurity Insurance Market Outlook, By Insurance Coverage (2020-2028) ($MN)
15 Global Cybersecurity Insurance Market Outlook, By Data Breach (2020-2028) ($MN)
16 Global Cybersecurity Insurance Market Outlook, By Data Loss (2020-2028) ($MN)
17 Global Cybersecurity Insurance Market Outlook, By Randsomware Attacks (2020-2028) ($MN)
18 Global Cybersecurity Insurance Market Outlook, By Denial of Service and Down-Time (2020-2028) ($MN)
19 Global Cybersecurity Insurance Market Outlook, By Cyber Liability (2020-2028) ($MN)
20 Global Cybersecurity Insurance Market Outlook, By Type (2020-2028) ($MN)
21 Global Cybersecurity Insurance Market Outlook, By Data Protection and Privacy Costs (2020-2028) ($MN)
22 Global Cybersecurity Insurance Market Outlook, By Non-Compliance Penality (2020-2028) ($MN)
23 Global Cybersecurity Insurance Market Outlook, By Brand and Related Intellectual Property Protection (2020-2028) ($MN)
24 Global Cybersecurity Insurance Market Outlook, By Others (2020-2028) ($MN)
25 Global Cybersecurity Insurance Market Outlook, By Source/Target (2020-2028) ($MN)
26 Global Cybersecurity Insurance Market Outlook, By Internal (2020-2028) ($MN)
27 Global Cybersecurity Insurance Market Outlook, By External (2020-2028) ($MN)
28 Global Cybersecurity Insurance Market Outlook, By Insurance Type (2020-2028) ($MN)
29 Global Cybersecurity Insurance Market Outlook, By Packaged (2020-2028) ($MN)
30 Global Cybersecurity Insurance Market Outlook, By Stand-Alone (2020-2028) ($MN)
31 Global Cybersecurity Insurance Market Outlook, By Organization Size (2020-2028) ($MN)
32 Global Cybersecurity Insurance Market Outlook, By Large Enterprises (2020-2028) ($MN)
33 Global Cybersecurity Insurance Market Outlook, By SMEs (2020-2028) ($MN)
34 Global Cybersecurity Insurance Market Outlook, By End User (2020-2028) ($MN)
35 Global Cybersecurity Insurance Market Outlook, By Technology Providers (2020-2028) ($MN)
36 Global Cybersecurity Insurance Market Outlook, By Third-Party Administrators, Brokers, and Consultancies (2020-2028) ($MN)
37 Global Cybersecurity Insurance Market Outlook, By Insurance Companies (2020-2028) ($MN)
38 Global Cybersecurity Insurance Market Outlook, By Government Agencies (2020-2028) ($MN)
39 Global Cybersecurity Insurance Market Outlook, By Insurance Providers (2020-2028) ($MN)
40 Global Cybersecurity Insurance Market Outlook, By Financial Services (2020-2028) ($MN)
41 Global Cybersecurity Insurance Market Outlook, By IT and ITES (2020-2028) ($MN)
42 Global Cybersecurity Insurance Market Outlook, By Healthcare and Life Science (2020-2028) ($MN)
43 Global Cybersecurity Insurance Market Outlook, By Telecom (2020-2028) ($MN)
44 Global Cybersecurity Insurance Market Outlook, By BFSI (2020-2028) ($MN)
45 Global Cybersecurity Insurance Market Outlook, By Retail and Ecommerce (2020-2028) ($MN)
46 Global Cybersecurity Insurance Market Outlook, By Travel, Tourism, and Hospitality (2020-2028) ($MN)
47 Global Cybersecurity Insurance Market Outlook, By Other End Users (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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