by Cyber security insurance helps protect businesses from the rising costs of data breaches, network security incidents, business interruption, and third-party liability claims. With an increasing reliance on digital technologies, there has been a surge in the volume and sophistication of cyber-attacks. Ransomware and phishing attacks have grown exponentially during the pandemic as more employees work remotely. This has accelerated the demand for cyber insurance policies that provide coverage for various cyber risks.
The Global Cyber Security Insurance Market is estimated to be valued at US$ 15.7 Mn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2030.
Cyber security insurance offers coverage for costs associated with restoring data, notifying customers of a breach, paying ransoms, forensic investigations, credit monitoring and legal defense. By transferring cyber risk to underwriters, companies can focus resources on running their core operations. Small and medium businesses that lack robust IT defenses are increasingly adopting cyber insurance policies. Global Cyber Security Insurance Market Size comprises products for enterprises, healthcare organizations, financial institutions and governments. North America currently dominates policy sales driven by stringent data security laws and heightened awareness among C-suites.
Key Takeaways
Key players operating in the Cyber Security Insurance are Advacare Pharma, UEBE Medical, Abbott Laboratories, Quidel Corporation, HiLin Life Products Inc., Geratherm Medical AG, Fertility Focus Limited, Fairhaven Health LLC, Church & Dwight Co. Inc., and Prestige Brands Holdings Inc., among others. The increasing frequency and impact of ransomware attacks has fueled strong demand for insurance policies tailored for cyber risks. With remote working here to stay, organizations face an expanded threat surface from unsecured home networks and devices. Leading insurers are expanding policy portfolios and partnering with cyber security firms to gain real-time threat intelligence and offer proactive services to clients. Countries like China, India, Brazil and South Africa represent huge opportunities for underwriters given the growing digitization and internet adoption in these regions.
Market Key Trends
The demand for cybersecurity insurance is growing rapidly as the attack surface expands with digital transformation and cloud migrations. Ransomware continues to plague under-protected organizations, with the average ransom payment doubling year-over-year. Insurers are enhancing coverage for specific threats while restricting payouts that fund cyber criminals. They closely monitor policyholder security postures and offer premium discounts for adopting baseline defenses and frameworks like the NIST Cybersecurity Framework.
Porter’s Analysis
Threat of new entrants: High upfront investments and costs for security infrastructure and measures act as entry barriers for new players. However opportunities exist for specialized insurance providers to target specific industry verticals.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of options from multiple insurers. However value additions like breach response services and risk assessment reports increase switching costs.
Bargaining power of suppliers: Cyber security vendors and service providers have moderate power given specialized knowledge. Insurers depend on them for expertise in policy framing, risk assessment and incident response.
Threat of new substitutes: Few close substitutes exist. Self-insurance is a option but involves high risks and costs. Outsourcing security to managed service providers is an alternative but does not cover financial losses from cyber breaches.
Competitive rivalry: Intense competition exists among global and regional players. Insurers differentiate based on coverage options, premium pricing and value added services to gain market share.
Geographical Regions
North America accounted for the largest market share in 2024, estimated at US$ 7.2 Mn owing to stringent data protection regulations and increasing cyber attacks. Asia Pacific is expected to be the fastest growing region during the forecast period due to rapid digital transformation and emergence of SMEs in countries like India and China. The region is projected to expand at a CAGR of 10.4% through 2030.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
