The global cyber insurance market size was USD 6.15 billion in 2020. The market is projected to grow from USD 7.60 billion in 2021 to USD 36.85 billion in 2028 at a CAGR of 25.3% in the 2021-2028 period.
Drivers and Restraints:
Rising Cybercrimes and Data Breaches to Fuel Market Growth
Cyberattacks and data breaches are rising throughout the globe, thereby boosting cyber insurance adoption. According to the report published by Checkpoint, in the year 2020 93% surge in ransomware occurrences were registered, and around 6 out of 10 companies experienced the cybercrime. This substantial elevation in cyberattacks is projected to drive the cyber insurance market growth.
Various industries such as healthcare, BFSI, and retail are being greatly directed by the hackers on account of the huge amount of saved customer data. Correspondingly, the increasing digitalization, online shopping, mobile banking, and online payment, electronic medical documents are anticipated to spur the danger of data breaches in these industries.
The COVID-19 pandemic has had a great influence on numerous industries and the mining equipment industry also had a principal collapse. The demand for these machines observed a substantial drop owing to the supply chain commotions.
Moreover, even mining equipment producers observed the absence of raw materials owing to the import-export and travel limitations resulting in terminations or delays in mining assignments.
List of the Key Companies Profiled:
- American International Group Inc. (New York, U.S.)
- Munich Re Group (Munich, Germany)
- Zurich Insurance Co. Ltd (Zurich, Switzerland)
- Berkshire Hathaway (Nebraska, U.S.)
- XL Group Ltd (AXA S.A) (Hamilton, U.S.)
- The Chubb Corporation (New Jersey, U.S.)
- Aon Plc. (London, U.K.)
- Axis Capital (Pembroke Parish, Bermuda)
- Lockton Companies Inc. (Missouri, U.S.)
- Hiscox Inc. (Georgia, U.S.)
USD 2.38 billion
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The global market scope is classified across five regions namely North America, Europe, Asia Pacific, Middle East, and Africa, and South America.
North America to dominate the market share during the forecast period. The increasing cyberattacks and high risk of data loss is likely to drive the cybersecurity insurance demand in the region. U.S. is likely to witness rapid growth owing to the country’s strong government regulation and strict policy in insuring cybersecurity. Also, the significant presence of key cyber insurance companies in the country is likely to fuel its growth.
Asia Pacific is estimated to witness rapid growth during the forecast period owing to the increasing cyber risk in the region as compared to the North America and Europe. As per the Microsoft 2020 report, APAC witnessed 1.7 times higher ransomware attacks as compared to the rest of the world. To increase the ease of doing business with lesser cyber security risk, government in countries such as India, China, South Korea, Japan, and others are investing in insurance. As per the Cyber Risk Management report, insurance demand in Asia Pacific for cybersecurity increased by 87%.
The increase in the number and severity of cyber-attacks in 2020 and 2021 has triggered significant changes to the cyber insurance marketplace. Historically, the cyber insurance marketplace had been considered “soft”, making it relatively easy for firms to obtain coverage at lower premiums. However, the heightened cyber risks and exponential growth of ransomware attacks in particular over the last year has led to a hardening of the marketplace. As we look ahead, these are the top five trends we anticipate seeing in 2022.
Key Questions Answered in This Report:
How does our product and services portfolio compare to leading competitors?
What are the key developments in customer demand given the changing economy?
What are the new pricing and consumption models in the marketplace and how should we align our portfolio?