Cyber security insurance provides coverage against losses from security breaches and attacks. It protects companies from losses like data recovery, ransomware payments, legal services for regulatory fines or lawsuits, credit monitoring services and public relations expenses to restore reputation. With growing digitization of businesses and online activities, cyber attacks have emerged as one of the biggest threats globally prompting the need for effective security solutions.
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.
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 growing instances of cyber attacks and rising dependency of organizations on digital infrastructure and internet connectivity is creating significant opportunities for cyber security solution providers to introduce advanced and tailored insurance covers for businesses. With increasing globalization of operations and presence across multiple countries, companies have started exploring multi-national cyber security insurance policies for holistic protection.
Global Cyber Security Insurance Market Size is witnessing rapid global expansion driven by regulatory mandates in several countries regarding data protection compliance and insurance for notified data breaches. Countries across North America, Europe, Asia Pacific and Latin America are recognizing the need for cyber regulation and insurance to curb growing cyber crimes.
Market drivers
Increasing frequency of sophisticated cyber-attacks targeting critical infrastructure and ransomware demands are compelling organizations to invest more in cyber risk mitigation strategies including insurance covers. Growing digitization of medical systems, industrial control systems and IoT devices connected to the internet have widened the attack surface for hackers driving the need for cyber insurance and security frameworks. The lack of standardized global cyber laws and regulations has also pushed companies to voluntarily adopt cyber insurance to address liability concerns.
PEST Analysis
Political: Regulations around cybersecurity and data privacy are getting stricter every year around the world, with laws like GDPR in EU. This increases the need for businesses to buy insurance covers against cyber risks and data breaches.
Economic: With rising number of cyberattacks and data breaches, the costs of such incidents are only increasing for businesses. Insurance provides an avenue to transfer these risks to a third party at a fixed cost.
Social: Greater awareness among people about cyber risks and how their personal data is used has increased privacy concerns. Businesses are facing pressure to boost data security and protect customer information, driving demand for cyber insurance.
Technological: Newer technologies like cloud, IoT and mobile are expanding the attack surface for hackers. They enable new types of risks around networks, endpoints and applications. This pushes the need for advanced, specialized cyber insurance policies.
The market in terms of value is concentrated most significantly in North America and Western Europe. The regions have stricter regulations around cybersecurity and data protection while large enterprises from sectors like finance, healthcare etc. drive the demand.
Among regions, Asia Pacific is poised to be the fastest growing market for cyber insurance during the forecast period. Countries like China, India, Japan, Australia and South Korea are actively working to draft comprehensive data protection and cybersecurity laws. With rapid digitalization and growing awareness, the demand from businesses will surge exponentially in the coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
