Rising need for high security in case of online transactions, social media, and applications are increasing the security needs of the companies at a rapid rate. Cyber-attacks can cause severe financial and other losses to an organization or an individual. Cyber insurance policy/cyber liability insurance/cyber risk insurance allows an organization’s liability for any kind of sensitive data breach, cyber extortion, and network interruption. As per a new report by IndustryARC, the global cyber insurance market size stood at $5.258 billion as of 2018. Furthermore, the demand is anticipated to rise at a compound annual growth rate (CAGR) of 27.18% in the forecast period 2019-2025.
The report is titled as “Cyber Insurance Market: By Type (Cyber Security, Cyber Liability, Technology Errors, and Omissions, others); By Industry Vertical (Healthcare, Retail, BFSI, IT and services, others) & Geography – Forecast (2019 - 2025).” It consolidates an in-depth assessment of the competitive landscape, product segments, product market sizing, product benchmarking, market trends, financial analysis, and strategic analysis of the market.
Cyber Insurance Market: Leading Segments
Initially, cyber insurance market demand was seen in media, telecom, technology, and professional services. However, now the growth is evident across all major industries. In 2018, health care, education, and gaming organizations were the major cyber insurance buyers.1 According to the IndustryARC report, the health care industry is the leading buyer of cyber risk insurance. Thus the demand for cyber insurance in the segment of health care is projected to grow at a CAGR of 29.75% during the aforesaid forecast period.
Based on Global Security Index (GSI) of Global Security Agenda (GSA), conducted by International Telecommunication Union (ITU), countries such as Singapore, United States, Malaysia, and Oman are ranked as the best ones that are prepared for cyber-attacks. North America is identified as one of the major target for cyber-crime, which accounted with a regional share of 34.48% in the global cyber insurance market as of 2018. The United States is expected to experience a huge amount of cyber-attacks in the near future, owing to the fact that it resides a large pool of computer system-dependent enterprises. By 2023, Cybercriminals are expected to steal 33 billion records. More than half of the data breach is estimated in the United States.3
Cyber Risk Insurance Market: Disruptive Trends
- Businesses understand that insurance is the key to deal with risk management. Thus, increasing risk awareness is diverting more organizations to focus on their business interruption risk factors, along with data breach.
- · Embracing digital technology is one of the key components of any emerging business. Business interruption (BI) is the most terrifying scenario for businesses. Cyber incidents top the list of BI, which also causes an economic loss for the organizations. Therefore, cyber insurance providers are keen to focus on BI services.
- · Cyber insurance premiums are expected to increase more than double in the next few years. Personal cyber cover market, still in its infancy, is estimated to rise in the future. People expect cyber insurance as an add-on to other types of insurance rather than a core product.
- · As cloud, IoT, AI technologies are growing, cybercriminals are using these advanced technologies to expand remote access attacks, home automation vulnerabilities, cybersecurity evasion, social engineering, phishing effectively. AI enabled phishing tops the list in the upcoming years as it is cheap and easy to work.
- · Recent cyber-attacks on Sony Pictures Entertainment, Yahoo, HBO, and Uber alarmed the organizations about the importance of cybersecurity. Majority of SMEs in Singapore, Hong Kong, Australia lack the value education of cyber insurance.2 Governments of different countries are taking up measures to enhance knowledge and importance of cyber insurance.
Currently, American International Group, Inc, Berkshire Hathaway, Allianz Global Corporate & Specialty, Munich Re Group, The Chubb Corporation, Zurich Insurance Co. Ltd, XL Group Ltd, Lloyds, Lockton Companies, Inc and AON PLC are the major shareholders of the Cyber Insurance market.
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A. Cyber Security Market
B. Cyber Security Market in Fintech
C. Internet Security Market
What can you expect from the report?
The Cyber Insurance market is prepared with the main agenda to cover the following 20 points:
1. Market Size by Product Categories & Application 11. Demand Analysis (Revenue & Volume)
2. Market trends & Relevant Market Data 12. Country level Analysis
3. Manufacturer Landscape 13. Competitor Analysis
4. Distributor Landscape 14. Market Shares Analysis
5. Pricing Analysis 15. Value Chain Analysis
6. Top 10 End user Analysis 16. Supply Chain Analysis
7. Product Benchmarking 17. Strategic Analysis
8. Product Developments 18. Current & Future Market Landscape Analysis
9. Mergers & Acquisition Analysis 19. Opportunity Analysis
10. Patent Analysis 20. Revenue and Volume Analysis
Frequently Asked Questions:
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Response: Yes, we can customize the report by extracting data from our database of reports and annual subscription databases. We can provide the following free customization:
1. Increase the level of data in application or end user industry.
2. Increase the number of countries in geography chapter.
3. Find out market shares for other smaller companies or companies which are of interest to you.
4. Company profiles can be requested based on your interest.
5. Patent analysis, pricing, product analysis, product benchmarking, value and supply chain analysis can be requested for a country or end use segment.
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Mr. Venkat Reddy
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About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.