Global Cyber Insurance Market Analysis and Forecast 2019-2028
$2,800.00 – $5,440.00
Penetration of Remote Working Policies to expand the Market Revenue
The global cyber insurance market is expected to grow at a CAGR of 23.4 % and is estimated at US$ 9 billion in 2022. While the rise in cloud computing and the growth of the e-commerce industry are some of the key factors affecting the growth of the global cyber insurance market, the concept of cyber risk is crucial for the global cyber insurance market.
An integrated view of cyber insurance is critical to fully address the range of risks that it can give rise to. Cyber risk bridges the gap between tangible and intangible assets, which leaves an organization exposed to a much wider scale of damage, which is not often adequately insured for.
In past years, cyber insurance has been focused on digital assets, such as clients’ personal data or transactional data. The increase in cyber-attacks along with their wider impact has led the key market players across the cyber insurance industry to rethink the knock-on effect on other insurance lines like personal (reputation), property (physical damage), intellectual property (competitor information), etc.
The unfolding of cyber insurance developments from a single focus on digital to encompassing other asset classes is a nascent one, with current insurers struggling to use traditional methods to model these risks, especially in the light of minimal, and unrepresentative, data.
Apart from that, the market has seen a growth in the demand for cyber insurance with the penetration of the pandemic and remote working as enterprise Virtual Private Network (VPN) servers become prone to cyberattacks. Moreover, the pandemic period reflected a huge rise in ransomware attacks, spam mail, etc.
Increasing frequency and sophistication of Cyber Attacks to fuel the market growth
There is no denying that the sophistication of ransomware attacks has become a major problem in recent years. Increases in sophisticated cyberattacks imply the emergence of a new breed of threat that has evolved from its predecessors. However, even the most archaic techniques can expose gaps in an organization’s defenses. The sophistication is in the attacker’s approach and delivery. Moreover, cybercriminals have started adapting new techniques and evolving the old ones to increase success rates by experimenting with different luring techniques.
In addition, the emerging concept of crime-as-a-Service is expected to fuel the demand for cyber insurance in corporate companies as cybercriminals emulate corporate practices by aligning commercially and diversifying their enterprises, seeking profits by moving more of their activities online. This level of sophistication forces legitimate organizations everywhere to adapt their security strategies and fortify their internal business operations.
Upsurge in Ransomware Attacks is expected to propel the Cyber Insurance Market Growth
In 2021, ransomware attacks continued to ravage the bottom lines of both their victims and insurance carriers. As per the data, during the first six months of 2021, US$ 590 million were paid in ransom payments, as opposed to US$ 416 million paid in all of 2020. The latest analysis by RationalStat says that over the past year, the average downtime from a ransomware attack was 23 days with average business interruption losses and other costs increasing from US$ 761,106 to US$ 1.85 million in 2021. Such ransomware attacks make cyber insurance unavoidable for companies across various industry verticals including healthcare, retail, BFSI, etc.
- In addition, the cyber-insurance market globally is showing a rapid growth rate, the reason for the growth is a recent push in the awareness of the importance of residual cyber-risk management solutions such as cyber insurance among organizations with Internet-facing business processes, combined with the traditional extremely low coverage base spanned by cyber insurance solutions in the last decade.
- However, companies have started considering cyber insurance as an investment, and the amount of yearly cyber insurance coverage companies usually buy ranges from US$1 million (small companies) to US$ 200 million (large IT service providers).
- Such growth prospects have compelled major cyber insurance policy carriers in India to claim that cyber insurance might be the fastest-growing insurance sector in India today. This is primarily because companies in nearly every sector including startups, manufacturing, transportation, banks, non-banks, IT service, health, and retail are steadily digitizing their entire workflow for increased Return on Investment (ROI) and business process efficiency reasons, and are waking up to the cyber-risk management importance of such policies, especially post-pandemic.
Market Structure and Competition Landscape
The global market for cyber insurance is fragmented in nature as a large number of players operate globally creating cut-throat competition for the players in the market. Also, mergers and acquisitions are common trends cited in the global cyber insurance market.
The key players in the cyber insurance market globally are Traveler Indemnity Company, AXA AL, Chubb, American International Group, Inc, Beazley Group, AXIS Capital, BCS Financial Corporation, Zurich Insurance, CNA Financial Corporation, The Hanover Insurance Group, Bajaj Allianz, ICICI Lombard, Tata AIG, HDFC Ergo and Lloyds India among others.
- In Jan 2023, San Francisco-based At-Bay become a full-stack insurance carrier with the acquisition of At-Bay Specialty Insurance Company (At-Bay SIC) from XL Insurance America, Inc.
- At-Bay said the move to a full-stack carrier will allow the company to better serve its policyholders and accelerate planned product expansion into additional specialty lines, as well as give At-Bay more control over the entire insurance value chain while strengthening its commitment to the wholesale channel.
- In Jan 2023, Coalition’s UK business began trading as an approved Lloyd’s cover holder. Last year, Coalition launched an independent Bermuda-based Class 3B reinsurer, Ferian Re, that catered to provide capacity across Coalition’s cyber programs.
Key Market Segmentation: Global Cyber Insurance Market
RationalStat has segmented the global cyber insurance market on the basis of cyber loss type, coverage type, insurance type, enterprise size, end user, and region/country.
- By Cyber Loss Type
- Digital Damage
- IP Theft
- Business Interruption
- Digital Assets
- Physical Damage
- Digital Damage
- By Coverage Type
- First-Party
- Liability Coverage
- Forensics
- Notification
- Credit Monitoring
- Public Relations
- Reputational Risk
- Legal Defense
- Settlement Costs
- Crisis Management
- Recovery Costs
- Regulatory Fines
- By Insurance Type
- Standalone
- Custom/Tailored
- By Enterprise Size
- SMEs
- Large Enterprises
- By End User
- Healthcare
- Retail
- BFSI
- Retail
- IT & Telecom
- Manufacturing
- Others (Government, Travel & Tourism, etc.)
- By Region
- North America
- US
- Canada
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Western Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- Rest of Eastern Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- South Africa
- Turkey
- Rest of the Middle East & Africa
- North America
Research Methodology
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
Why Buy this Report?
The report is intended for health service providers, government organizations, cyber insurance service providers, insurance organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
| REGION | Global |
|---|---|
| RELEASE YEAR | 2023 |
| RESEARCH CODE | RST-SAR-1425 |
| ADDITIONAL FEATURE | 24×7 Post sales support and 15% free customization |
| User License | Single User/Team License, Corporate License |
Table of Contents
1. Market Introduction
1.1. Scope of Study
1.2. Problem Statement
1.3. Market Segmentation
2. Assumptions and Acronyms
3. Executive Summary
3.1. Global Cyber Insurance Market in 2022 and Outlook till 2028
3.2. Analyst Insights & Recommendations
3.3. Growth Opportunities and Key Strategies
3.4. Supply-side and Demand-side Trends
4. Research Methodology
5. Analysis of COVID-19 Impact and Road Ahead
6. Market Indicators and Background
6.1. Macro-Economic Factors
6.2. Forecasting Factors
Robust assessment of various factors including industrial performance, industry players’ expenditures, and economic conditions, among others
6.3. Supply Chain & Value Chain Analysis
6.3.1. Policyholders
6.3.2. Insurance Providers
6.3.3. Cybersecurity Firms
6.3.4. End Users
6.4. Industry SWOT Analysis
6.5. PESTLE Analysis
6.6. Porter’s Five Forces Analysis
7. Government Laws and Industry Regulations
8. Global and Regional Market Dynamics
8.1. Drivers
8.2. Restraints
8.3. Trends
8.4. Opportunities
9. Cyber Policies across the Globe
10. Average Premiums
11. Top Obstacles to the Sales of Cyber Insurance
12. Average Cost of a Breach
(Based on the share of employees working remotely)
13. Steps taken to Combat increasing loss ratios in Cyber Insurance Market
13.1. Increase in Insurance Premiums
13.2. Coverage Limitations
13.3. Capacity Constriction
13.4. Greater Underwriting Scrutiny
14. Global Cyber Insurance Market: Technology Assessment
Robust assessment of key technologies incorporated in various types of Cyber Insurance that are commercialized in the marketplace
15. Parent Market Overview
15.1. Global Cybersecurity Market
15.2. Global Insurance Market
16. Segmental Analysis
16.1. Global Cyber Insurance Market Value (US$ Million) and Volume (units) Analysis by Cyber Loss Type
16.1.1. Digital Damage
16.1.1.1. IP Theft
16.1.1.2. Business Interruption
16.1.1.3. Digital Assets
16.1.2. Physical Damage
16.2. Global Cyber Insurance Market Value (US$ Million) and Volume (units) Analysis by Coverage Type
16.2.1. First-Party
16.2.2. Liability Coverage
16.2.2.1. Forensics
16.2.2.2. Notification
16.2.2.3. Credit Monitoring
16.2.2.4. Public Relations
16.2.2.5. Reputational Risk
16.2.2.6. Legal Defense
16.2.2.7. Settlement Costs
16.2.2.8. Crisis Management
16.2.2.9. Recovery Costs
16.2.2.10. Regulatory Fines
16.3. Global Cyber Insurance Market Value (US$ Million) and Volume (units) Analysis by Insurance Type
16.3.1. Standalone
16.3.2. Custom/Tailored
16.4. Global Cyber Insurance Market Value (US$ Million) and Volume (units) Analysis by Enterprise Size
16.4.1. SMEs
16.4.2. Large Enterprises
16.5. Global Cyber Insurance Market Value (US$ Million) and Volume (units) Analysis by End User
16.5.1. Healthcare
16.5.2. Retail
16.5.3. BFSI
16.5.4. Retail
16.5.5. IT & Telecom
16.5.6. Manufacturing
16.5.7. Others (Government, Travel & Tourism, etc.)
16.6. Global Cyber Insurance Market Value (US$ Million) and Volume (units) Analysis by Region
16.6.1. North America
16.6.2. Latin America
16.6.3. Western Europe
16.6.4. Eastern Europe
16.6.5. Asia Pacific
16.6.6. Middle East & Africa
17. Regional Analysis
17.1. North America Cyber Insurance Market Analysis and Forecast 2019-2028
17.1.1. Regional Market Overview and Key Takeaways
17.1.2. North America Cyber Insurance Market by Cyber Loss Type
17.1.3. North America Cyber Insurance Market by Coverage Type
17.1.4. North America Cyber Insurance Market by Insurance Type
17.1.5. North America Cyber Insurance Market by Enterprise Size
17.1.6. North America Cyber Insurance Market by End User
17.1.7. North America Cyber Insurance Market by Country
17.1.7.1. US
17.2. Latin America Cyber Insurance Market Analysis and Forecast 2019-2028
17.2.1. Regional Market Overview and Key Takeaways
17.2.2. Latin America Cyber Insurance Market by Cyber Loss Type
17.2.3. Latin America Cyber Insurance Market by Coverage Type
17.2.4. Latin America Cyber Insurance Market by Insurance Type
17.2.5. Latin America Cyber Insurance Market by Enterprise Size
17.2.6. Latin America Cyber Insurance Market by End User
17.2.7. Latin America Cyber Insurance Market by Country
17.2.7.1. Brazil
17.2.7.2. Mexico
17.2.7.3. Rest of Latin America
17.3. Western Europe Cyber Insurance Market Analysis and Forecast 2019-2028
17.3.1. Regional Market Overview and Key Takeaways
17.3.2. Western Europe Cyber Insurance Market by Cyber Loss Type
17.3.3. Western Europe Cyber Insurance Market by Coverage Type
17.3.4. Western Europe Cyber Insurance Market by Insurance Type
17.3.5. Western Europe Cyber Insurance Market by Enterprise Size
17.3.6. Western Europe Cyber Insurance Market by End User
17.3.7. Western Europe Cyber Insurance Market by Country
17.3.7.1. Germany
17.3.7.2. UK
17.3.7.3. France
17.3.7.4. Spain
17.3.7.5. Italy
17.3.7.6. Benelux
17.3.7.7. Nordic
17.3.7.8. Rest of Western Europe
17.4. Eastern Europe Cyber Insurance Market Analysis and Forecast 2019-2028
17.4.1. Regional Market Overview and Key Takeaways
17.4.2. Eastern Europe Cyber Insurance Market by Cyber Loss Type
17.4.3. Eastern Europe Cyber Insurance Market by Coverage Type
17.4.4. Eastern Europe Cyber Insurance Market by Insurance Type
17.4.5. Eastern Europe Cyber Insurance Market by Enterprise Size
17.4.6. Eastern Europe Cyber Insurance Market by End User
17.4.7. Eastern Europe Cyber Insurance Market by Country
17.4.7.1. Russia
17.4.7.2. Poland
17.4.7.3. Rest of Eastern Europe
17.5. Asia Pacific Cyber Insurance Market Analysis and Forecast 2019-2028
17.5.1. Regional Market Overview and Key Takeaways
17.5.2. Asia Pacific Cyber Insurance Market by Cyber Loss Type
17.5.3. Asia Pacific Cyber Insurance Market by Coverage Type
17.5.4. Asia Pacific Cyber Insurance Market by Insurance Type
17.5.5. Asia Pacific Cyber Insurance Market by Enterprise Size
17.5.6. Asia Pacific Cyber Insurance Market by End User
17.5.7. Asia Pacific Cyber Insurance Market by Country
17.5.7.1. China
17.5.7.2. Japan
17.5.7.3. India
17.5.7.4. South Korea
17.5.7.5. Australia
17.5.7.6. ASEAN
17.5.7.7. Rest of Asia-Pacific
17.6. Middle East & Africa Cyber Insurance Market Analysis and Forecast 2019-2028
17.6.1. Regional Market Overview and Key Takeaways
17.6.2. Middle East & Africa Cyber Insurance Market by Cyber Loss Type
17.6.3. Middle East & Africa Cyber Insurance Market by Coverage Type
17.6.4. Middle East & Africa Cyber Insurance Market by Insurance Type
17.6.5. Middle East & Africa Cyber Insurance Market by Enterprise Size
17.6.6. Middle East & Africa Cyber Insurance Market by End User
17.6.7. Middle East & Africa Cyber Insurance Market by Country
17.6.7.1. GCC
17.6.7.2. South Africa
17.6.7.3. Turkey
17.6.7.4. Rest of the Middle East & Africa
18. Competitive Landscape
18.1. Competition Dashboard
18.1.1. Global and Regional Market Share Analysis
18.1.2. Market Structure
18.2. Competitive Benchmarking
18.3. Key Strategy Analysis
18.4. Company Profiles
18.4.1. Traveler Indemnity Company
18.4.1.1. Company Overview
18.4.1.2. Product/Service Offerings
18.4.1.3. Financials
18.4.1.4. Recent Developments
18.4.2. AXA AL
18.4.2.1. Company Overview
18.4.2.2. Product/Service Offerings
18.4.2.3. Key Financials
18.4.2.4. Recent Developments
18.4.3. Chubb
18.4.3.1. Company Overview
18.4.3.2. Product/Service Offerings
18.4.3.3. Key Financials
18.4.3.4. Recent Developments
18.4.4. American International Group, Inc.
18.4.4.1. Company Overview
18.4.4.2. Product/Service Offerings
18.4.4.3. Financials
18.4.4.4. Recent Developments
18.4.5. Beazley Group
18.4.5.1. Company Overview
18.4.5.2. Product/Service Offerings
18.4.5.3. Financials
18.4.5.4. Recent Developments
18.4.6. AXIS Capital
18.4.6.1. Company Overview
18.4.6.2. Product/Service Offerings
18.4.6.3. Financials
18.4.6.4. Recent Developments
18.4.7. BCS Financial Corporation
18.4.7.1. Company Overview
18.4.7.2. Product/Service Offerings
18.4.7.3. Financials
18.4.7.4. Recent Developments
18.4.8. Zurich Insurance
18.4.8.1. Company Overview
18.4.8.2. Product/Service Offerings
18.4.8.3. Financials
18.4.8.4. Recent Developments
18.4.9. CNA Financial Corporation
18.4.9.1. Company Overview
18.4.9.2. Product/Service Offerings
18.4.9.3. Financials
18.4.9.4. Recent Developments
18.4.10. The Hanover Insurance Group
18.4.10.1. Company Overview
18.4.10.2. Product/Service Offerings
18.4.10.3. Financials
18.4.10.4. Recent Developments
18.4.11. Bajaj Allianz
18.4.11.1. Company Overview
18.4.11.2. Product/Service Offerings
18.4.11.3. Financials
18.4.11.4. Recent Developments
18.4.12. ICICI Lombard
18.4.12.1. Company Overview
18.4.12.2. Product/Service Offerings
18.4.12.3. Financials
18.4.12.4. Recent Developments
18.4.13. Tata AIG
18.4.13.1. Company Overview
18.4.13.2. Product/Service Offerings
18.4.13.3. Financials
18.4.13.4. Recent Developments
18.4.14. HDFC Ergo
18.4.14.1. Company Overview
18.4.14.2. Product/Service Offerings
18.4.14.3. Financials
18.4.14.4. Recent Developments
18.4.15. Lloyds India
18.4.15.1. Company Overview
18.4.15.2. Product/Service Offerings
18.4.15.3. Financials
18.4.15.4. Recent Developments
19. Disclaimer
Every Sample Includes
Research Methodology
Complete Table of Contents, List of Charts and Tables
Exclusive Facts & Illustrations
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