Market Highlights
In current times, the online generation of data is surging. The scope for data leakage is growing that is underpinning the need for insurance of cyber security. Thus, the cyber insurance market 2020 is expected to experience an expeditious growth. Across the forecast period, the global cyber insurance market is expected expand at 10.5% CAGR, reveals Market Research Future (MRFR). The estimated cyber insurance market size is USD 199.9 billion by 2025 owing to the rise in cyber insurance coverage for different sectors. These solutions are dedicated to preserve integrity an organization’s assets that is noted to promote the expansion of the market. In addition, increase in the deployment of cloud solutions and technological advancements can also impel the global cyber insurance market growth.
Increasing digitization of organizational operations has led to a rise in concerns related to the safety and security of digital assets. This, in turn, is supposed to drive the growth of the cyber insurance market in the coming years. Enterprises store and process massive digital data on a day-to-day basis. The threat to these data securities can incur huge losses for the company. Thus, insurance services are available to protect the interest of the organizations. Rising awareness about the same is projected to boost growth of the cyber insurance market in the foreseeable future.
Rising investments in digital and social media marketing is another factor expected to increase investments in cyber insurance market. Furthermore, rising cases of cyberattacks have further helped the cyber insurance market to growth at a considerable pace. With the rising attacks, enterprises have catalyzed investments in the adoption of insurance services to keep away from drastic losses.
Segmentation:
On the basis of component, the cyber insurance market size has been segmented into solution and services.
Based on coverage type, the cyber insurance market has been segmented into first-party coverage, third-party coverage, and others. The third-party coverage segment is further sub-segmented into litigation, crisis management, regulatory response, credit monitoring, privacy and security liability, media and communications liability, and network security liability. The sub-segments of the first-party coverage segment are business interruption, forensic investigation, computer program, theft and fraud, and electronic restoration and extortion
On the basis of organization size, the cyber insurance market has been divided into small- and medium-sized enterprise (SME) and large enterprise.
Based on vertical, the segments of the cyber insurance market are aerospace and defense, banking, financial services, and insurance, government, IT and telecom, healthcare, automotive & transportation, retail, manufacturing, energy and utilities, education, media and entertainment, and others.
Regional Analysis
North America, led by the US, is expected to hold the largest market share of the global cyber insurance market. High rate of adoption of advanced technologies and rapid digital transformation that are taking place in North America are likely to be held responsible for the expansion of the global cyber insurance market. As the chances of cyber risks and vulnerabilities increase, the adoption of cyber insurance solutions across the region is increasing. As a result, the North America cyber insurance market can experience rapid expansion.
The increase in deployment of cloud-based services is expected to impel the Europe cyber insurance market. Other factor that is the existence of regulatory compliance laws in the region is expected to boost the market in the region. In Asia Pacific, the fast-paced growth of the cyber insurance market is due to the expansion of BFSI sector in the region.
Competitive Dashboard:
AXA XL (US), At-Bay, Inc. (US), GUY CARPENTER & COMPANY, LLC (US), American International Group Inc. (US), Zurich Insurance Co. Ltd (Switzerland), Lloyds Bank PLC (UK), The Chubb Corporation (US), Beazley Group (UK), AON PLC (UK), HDFC ERGO General Insurance Company Limited (India), Lockton Companies Inc. (US), Allianz SE (Germany), Security Scorecard (US), Munich Re Group (Germany), and Jardine Lloyd Thompson Group Ltd (UK) are few of the key cyber insurance market companies.
