Global Cyber Insurance Market by Application (IT & Telecom, BFS, Healthcare), by Organization (SMB, Large Enterprise) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

In 2018, the global cyber insurance market was worth USD 4.3 billion. It is projected to grow at a 25.6% CAGR over the forecast period. The increasing digitalization of businesses and economies has presented many challenges in managing digital security and privacy. Due to the rapidly rising incidences of cybercrimes and digital frauds, threats and data breaches, managing internet and online risk has become a top priority for businesses. Even though companies have implemented robust cybersecurity solutions to curb and mitigate cyberattacks, the losses due to these breaches are still significant and can impact organizations' profit margins.

According to the European Network and Information Security Agency's Threat Landscape Report 2018, data breaches cost an average of USD 3.86 million. This is 6.4% more than 2017. As a result of rising threats like identity theft, ransomware and information leakage, financial losses are expected to increase at a steady pace. Businesses must eliminate cyber risk and minimize its potential impact. As the threat landscape changes, risk transfer is a viable alternative to a strong cyber security posture.

Insurance plays an important role in helping consumers and businesses manage cyber risk. Policyholders also have financial protection against cyber attacks that can't be prevented completely. Cyber insurance protects companies from internet-based threats and provides policies that cover first-party losses due to hacking, theft, denial-of service attacks, extortion, and data destruction. They also offer liability coverage that covers losses due to omissions, errors, defamation and failure to protect data.

Target Corporation, for example, incurred USD 291 millions in breach-related expenses as of 2016. This included legal fees and crisis communication costs. The company was able to receive USD 100 million in cyber insurance from multiple underwriters. Home Depot Inc. also received cyber protection coverage of American International Group Inc. in the amount of USD 105 millions.

Cyber insurance is proving to be incredibly useful in the case of a large-scale cybersecurity breach. Market insurers require adequate cybersecurity to be eligible for coverage. To receive lower premium rates, organizations must adopt appropriate online security and protection practices. Insurance providers provide a flexible funding option to help recover from large losses. This reduces the need for government assistance.

It is becoming increasingly important to prioritise cyberattacks using a robust risk mitigation strategy. Organizations can use cyber insurance to protect themselves against the potentially disastrous effects of cybercrimes. Companies are also adopting cyber insurance in order to be more resilient to online threats. However, general liability policies as well as cyber policies do not cover losses due to cyber warfare. This will limit market growth.

Organization Insights

Cyberattacks can affect organizations of any size due to the rapid growth of technology trends like IoT, cloud technologies, artificial intelligence, big data, and machine learning. Businesses have been able to achieve their business goals and grow with the help of advanced technologies. These technologies, however, have opened up new avenues for attacks due to digitalization.

In 2018, the large enterprise segment dominated the market and will continue to dominate the market for the forecast period. Large enterprises have a higher level of spending power to implement robust cybersecurity solutions. Cyber insurance policies are being rapidly adopted by large companies to reduce the risk of a cyberattack. Cyber insurance could also help improve computer security risk management within an organization. This will likely to increase the segment's growth during the forecast period.

Cyberattacks are more likely to strike small and medium businesses (SMB), which lack the security infrastructure necessary. They are working to assess and mitigate emerging threats. Cyber insurance can help such companies save money by providing first-party as well as third-party protection. These include digital asset loss or damage, business interruptions, online extortion and theft, as well as customer notification cost, computer forensics investigation and multi-media liability.

Application Insights

In 2018, the largest share of cyber insurance market was held by the banking and financial services (BFS). Due to increasing monetary operations, it has become a major industry. There are more cybersecurity incidents, including large-scale breaches, frauds and heists. Security of financial services and banking is of particular concern as they are the backbone of many economies. Financial institutions and government agencies have been quick to adopt cyber insurance solutions in response to increasing threats and breaches. This is a way to reduce mounting losses and to mitigate risk for all organizations.

Over the forecast period, the highest CAGR is expected to be seen in healthcare applications. Online vulnerabilities have been created by the widespread digitization of healthcare to allow customers easy access to their data. Sensitive data is vulnerable to both internal and external threats. Over the past few years, hackers have made healthcare a target of choice. Cyber insurance is a popular option for some healthcare providers to offset losses due to cyberattacks.

Regional Insights

In 2018, the largest revenue share was held by North America. The region's growth can be attributed largely to the presence of major players like Lockton Companies, Inc., American International Group, Inc., and The Chubb Corporation. Demand is expected to rise due to increasing awareness among SMBs of cyber insurance.

Asia Pacific is predicted to experience the fastest CAGR growth over the forecast period. Cybercrimes are rising in emerging countries like India, Australia, China. These emerging economies have been forced to improve their cybersecurity due to the increasing role of Asian countries in global economic growth. Cyber insurance companies have been able to capitalize on this opportunity and offer policies to cover cyber risks as well as underwriting cyber products that can strengthen the security strategies of their clients.

Cyber Insurance Market Sharesights

Global market is still in its infancy and offers protection against digital threats to organizations. Limited established insurance providers increase the market's competitiveness. Insurers will have a significant opportunity to increase cyber insurance coverage and to build customer trust, due to the rising demand for cybersecurity.

The market players are taking advantage of the changing online threat landscape to offer solutions that minimize the impact of cyberattacks. AON Plc, American International Group, Inc., Berkshire Hathaway, Allianz Group, Berkshire Hathaway, Lockton Companies, Inc., The Chubb Corporation, Munich Re Group, XL Group Ltd., and Zurich Insurance Co. Ltd. are the key players in cyber insurance. In order to offer customized terms and conditions for their insurance products, the market leaders are creating innovative ways to assess clients' cyber risk.

The Report Covers Certain Segments

This report predicts revenue growth at the global, regional and country level and offers analysis on industry trends for each sub-segment from 2015 to 2025. Grand View Research has divided the global cyber insurance market report by application, organization, and region.

• Organization Outlook (Revenue, USD Billion, 2015 - 2025)

  • SMB

  • Large Enterprise

• Application Outlook (Revenue, USD Billion, 2015 - 2025)

  • BFS

  • Healthcare

  • IT & Telecom

  • Retail

  • Other

• Regional Outlook (Revenue USD Billion, 2015-2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA

Up Market Research published a new report titled “Cyber Insurance Market research report which is segmented by Application (IT & Telecom, BFS, Healthcare), by Organization (SMB, Large Enterprise), By Players/Companies Organization Outlook (Revenue USD Billion 2015 - 2025)SMBLarge Enterprise, SMB, Large Enterprise”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Cyber Insurance Market Report Segments:

The market is segmented by Application (IT & Telecom, BFS, Healthcare), by Organization (SMB, Large Enterprise).

Cyber Insurance Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Cyber Insurance Market

Overview of the regional outlook of the Cyber Insurance Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Cyber Insurance Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Cyber Insurance Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. IT & Telecom

                2. BFS

                3. Healthcare

                1. SMB

                2. Large Enterprise

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Cyber Insurance Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Cyber Insurance Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.