Cyber insurance market size to grow by USD 42,812.64 million between 2022 and 2027; Growth driven by the widespread adoption of technology - Technavio
NEW YORK, March 24, 2023 /PRNewswire/ -- The global cyber insurance market size is estimated to grow by USD 42,812.64 million from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 35.92% during the forecast period. The growth of the market is driven by the widespread adoption of technology. The rapid adoption of technology has increased the dependence on the internet to conduct transactions, store and process data, and manage finances. It has also led to an increased number of connected devices, cloud-based services, and mobile applications. This has increased the frequency and severity of cyber-attacks worldwide. Cyber insurance provides cover for a range of events, such as data breaches, network interruption, and cyber extortion. Thus, with the growing number of cyber attacks, the demand for cyber insurance will increase during the forecast period. For more insights on the historic period (2017 to 2021) and forecast market size (2023 to 2027) - Request a sample report
Major challenges hindering the market growth
The lack of standardization is identified as one of the major challenges affecting the growth of the market. Cyber insurance policy coverage can have certain exclusions and limitations that are not clearly stated. This creates gaps in insurance coverage, which makes end-users vulnerable to financial losses. Also, the lack of standardization makes it difficult for insurance companies to properly assess risks associated with certain policies and determine the appropriate coverage levels. These challenges reduce the growth potential of the market.
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Global Cyber Insurance Market - Segmentation Assessment Segment Overview Technavio has segmented the market based on type (large enterprises and small and medium-sized enterprises), solution (standalone and packaged), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market growth in the large enterprises segment will be significant during the forecast period. Large enterprises are at higher risk of cyber attacks. Hence, they adopt cyber insurance to mitigate the financial impact of security breaches. The high demand from this segment has driven vendors to offer tailored packages to meet the needs of large enterprises, including high coverage limits, comprehensive coverage, specialized services, and global coverage. All these factors are supporting the growth of the segment.
Geography Overview By geography, the global cyber insurance market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global cyber insurance market.
North America will account for 57% of the market growth during the forecast period. The increasing awareness of cyber insurance among individuals and businesses is driving the growth of the regional market. Also, factors such as the high adoption of technologies, the rise in online transactions, and the growth in the e-commerce industry are positively influencing the cyber insurance market in North America.
Insights on the market contribution of various segments including country and region wise, historic period (2017 to 2021), and forecast market size (2023 to 2027) - Download a Sample Report
Global Cyber Insurance Market ? Vendor Analysis
The global cyber insurance market is fragmented. Key vendors in the market have a strong reputation and brand recognition and are well-established in the insurance industry. The competitive landscape is highly dynamic as vendors are actively seeking to differentiate themselves through the coverage offered, the level of customer service provided, and the pricing of their products. With new players entering the market and existing players expanding their offerings, the competition is expected to increase during the forecast period. Some of the key vendors covered in the report include:
Aon plc - The company offers solutions for cyber insurance which allows organizations to analyze the relationship between risk, reward and the cost of mitigation and also prompt an evaluation of potential consequences by using statistical modeling to assess different damage scenarios.
At Bay Inc. - The company offers solutions for cyber insurance to help by alleviating the immediate risk based on realistic insights from automated assessments.
AXA Group - The company offers solutions for cyber insurance that help to prevent and protect insured entities from evolving cyber risks through technology-driven interventions.
Beazley Plc - The company offers solutions for cyber insurance that helps in providing more than protection coverage and support response and recovery plans, according to the report Cyber Risk Management.
Global Cyber Insurance Market ? Key Trend
The increased demand for cyber insurance is identified as the key trend in the market.
The growing dependence on digital technologies and the internet has increased the incidence of cyber-attacks.
Businesses and individuals are becoming more aware of the financial impact of cyber attacks.
To protect themselves against financial losses that can result from cyber attacks, many businesses and individuals are purchasing cyber insurance policies.
With the growing frequency and severity of cyber-attacks, the demand for cyber insurance policies will increase during the forecast period.
The reinsurance market size is expected to increase by USD 328.62 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 10.1%. The market is segmented by product (non-life reinsurance and life insurance) and geography (Europe, APAC, North America, Middle East and Africa, and South America).
The insurance brokerage market size is expected to increase by USD 101.94 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.93%. The market is segmented by type (non-life insurance and life insurance) and geography (North America, Europe, APAC, South America, and the Middle East and Africa).
Cyber Insurance Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 35.92%
Market growth 2023-2027
USD 42,812.64 million
YoY growth 2022-2023 (%)
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution
North America at 57%
US, Canada, China, Germany, and UK, Canada, Mexico, Italy, Spain, India, Japan, Australia, and South Korea
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled
American International Group Inc., Aon plc, Apple Inc., At Bay Inc., AXA Group, Axis Capital Holdings Ltd., BCS Financial Corp., Beazley Plc, BitSight Technologies Inc., Cisco Systems Inc., CNA Financial Corp., Guy Carpenter and Company LLC, Lloyds Banking Group Plc, Lockton Companies, SecurityScorecard Inc., Tata Consultancy Services Ltd., The Hanover Insurance Group Inc., The Travelers Co. Inc., Zurich Insurance Co. Ltd., and Chubb Ltd.
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
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Exhibit 175: Validation techniques employed for market sizing
Exhibit 176: Information sources
13.5 List of abbreviations
Exhibit 177: List of abbreviations
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