Sales of Cyber Insurance are projected to reach US$ 40 billion by 2033
According to a recent study conducted by proficient analysts at Fact.MR, a leading provider of market research and competitive intelligence, the global Cyber Insurance Market is anticipated to experience substantial growth with a robust Compound Annual Growth Rate (CAGR) of 12%. The market is expected to achieve a valuation of US$ 40 billion by the conclusion of 2033.
Cyber insurance is specifically designed to aid organizations in navigating the aftermath of cybersecurity breaches and similar incidents. This insurance coverage includes both first-party provisions and third-party liability claims, aiming to mitigate the financial exposure associated with recovering from cyber losses. It encompasses compensations for losses arising from network security breaches, breaches of privacy, legal protection against lawsuits related to data breaches, and various other associated expenses.
The research report identifies key segments in the Cyber Insurance industry, highlighting the escalating threat posed by increasing cyber-attacks in terms of their intensity and frequency. These attacks pose significant risks to individuals, businesses, and even entire nations, leading to a surge in the adoption of cyber insurance solutions. The consequences of cyber-attacks on businesses include a dwindling customer base, operational disruptions, regulatory fines, legal penalties, attorney fees, loss of intellectual property, and damage to reputation.
The recent notable expansion of the cyber insurance market is attributed to the rise in cyber-attacks and their far-reaching impact on public safety, economic stability, and government cybersecurity. Additionally, the growing recognition of cyber risks associated with business interruptions, coupled with the proliferation of mandatory data security regulations across sectors such as banking and healthcare, has emerged as key drivers propelling the growth of the cyber insurance market.
Key Takeaways from Market Study
· The global market for cyber insurance is valued at US$ 12.4 billion in 2023.
· Worldwide demand for cyber insurance is predicted to increase at a CAGR of 12% through 2033.
· By the end of 2033, the market is projected to reach US$ 40 billion.
· The market in the United States is projected to expand at a CAGR of 18% over the forecast period.
· With a 43% revenue share in 2023, North America held the top spot in the global market.
· Adoption of cyber insurance by large enterprises is projected to rise at a 17% CAGR through 2033.
· The market in China is set to progress at a CAGR of 17.4% from 2023 to 2033.
· The BFSI segment accounts for 26% share of the global market in 2023.
“In recent years, the market for cyber insurance has seen rapid expansion. This expansion can be ascribed to the increase in the frequency and sophistication of cyberattacks, which have cost enterprises across several industries a significant amount of money. The need for cyber insurance plans has grown due to heightened awareness of cyber threats,” says a Fact.MR analyst.
Market Competition
The market for cybersecurity insurance is relatively concentrated, with key competitors providing superior technology and encouraging expansion through their current distribution networks. To maintain a competitive edge in the market, these technological titans are spending on innovations, mergers, acquisitions, and collaboration activities.
· In November 2022, Agilicus, a cybersecurity company, joined forces with Ridge Canada Cyber Solutions Inc. (RCCS), a prominent managing general insurance agency, to facilitate Canadian small and medium-sized businesses (SMBs) in meeting cybersecurity insurance requirements and obtaining coverage.
Key Companies Profiled
· Lockton Companies, Inc.
· Lloyd’s of London Ltd.
· Munich Re
· Allianz
· Zurich
· Berkshire Hathway Inc.
· Aon PLC
· American International Group, Inc
More Valuable Insights on Offer
Fact.MR, in its new offering, presents an unbiased analysis of the global cyber insurance market, presenting historical demand data for 2018 to 2022 and forecast statistics for 2023 to 2033.
The study divulges essential insights into the market based on component (solutions, services), type (first-party coverage, third-party coverage), company size (large enterprises, SMEs), and industry vertical (BFSI, IT & telecom, retail & e-commerce, healthcare, manufacturing, government & public sector), across five major regions of the world (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa).
Leave a Reply