The Growing Cyber Insurance Market Size and Demand

The cyber insurance market size is growing rapidly, driven by increasing demand for protection against cyber threats. This growth is expected to continue, with the global cyber insurance market projected to reach $20 billion by 2025.

More companies are seeking cyber insurance to mitigate the financial impact of data breaches and cyber attacks. In fact, the number of cyber insurance policies sold has increased by 50% over the past two years.

The growing threat of cyber attacks is a major driver of demand for cyber insurance. According to a recent study, 60% of companies experienced a data breach in the past year, highlighting the need for robust protection.

Cyber insurance is becoming a necessity for businesses, with many companies now considering it a critical component of their risk management strategy.

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The cyber insurance market size is expected to grow significantly in the coming years, with a projected value of $20.7 billion by 2025.

This growth is largely driven by the increasing number of cyber attacks and data breaches, which have led to a surge in demand for cyber insurance policies.

According to a recent report, the global cyber insurance market is expected to expand at a compound annual growth rate (CAGR) of 24.5% from 2020 to 2025.

The rise of remote work and the Internet of Things (IoT) has also contributed to the growth of the cyber insurance market, as these trends increase the attack surface for cyber threats.

A key driver of the cyber insurance market is the increasing cost of cyber attacks, which can be mitigated by the right insurance policy.

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Cybercrime is a growing concern, with the number of reports nearly doubling in 2020. The FBI's Internet Crime Complaint Center (IC3) received 2,000 cybercrime reports per day in 2020, a 69 percent increase from the previous year.

Ransomware is a common type of cybercrime, with 1 in 6 businesses that fell victim to cyberattacks facing ransomware in 2020. About half of them paid up the ransom.

Data breaches are a significant problem, with over 37 billion personal records exposed in 2020. This is a staggering number, and it's essential for businesses to take steps to protect their data.

Identity fraud is another concern, with losses totaling $56 billion in 2020, affecting 49 million victims. Each victim lost an average of $1,100.

Cyberattacks are the most common type of cybercrime, affecting 70 percent of businesses. This is followed by identity theft, cyberbullying, and cyber extortion.

The top causes of data breaches are hacking, errors, social attacks, malware, misuse by authorized users, and physical actors. Hacking is the leading cause, responsible for 45 percent of breaches.

Data breaches can affect any business, regardless of size. In 2020, 72 percent of data breaches affected large companies, while 28 percent targeted small businesses.

The cost of data breaches is significant, with the average cost globally being $3.86 million. In the U.S., the average cost was $8.64 million in 2020.

Here are the top insuring clauses for cyber insurance claims:

Cyber insurance can help businesses recover from data breaches, including covering legal fees, recovery from a breach, and online vandalism recovery.

Cyber insurance offers a range of benefits to individuals and businesses, from protecting against financial loss to helping with recovery from cyberattacks.

With cyber insurance, individuals can get reimbursement for financial losses due to cyberattacks like ransomware, identity theft, and fraud. This can be a huge relief, especially if you've fallen victim to a cyberattack.

Cyber insurance can also help individuals recover from a wide variety of cyberattacks, including cyberbullying. Some policies even cover reimbursements for lost wages, legal fees, or private tutoring fees that are results of cyberbullying.

Businesses can benefit from cyber insurance in many ways, including covering legal fees resulting from cyberattacks. This can be a significant help, especially if you're dealing with a data breach.

Cyber insurance can also assist businesses in recovering from a breach, from helping with state-mandated customer notifications to recovering compromised data. This can help minimize the impact of a breach and get your business back on track.

For your interest: Cyber Insurance Data Breach

Here are some key benefits of cyber insurance for businesses:

With cyber insurance, businesses can have peace of mind knowing they're protected against cyber threats. Cyber insurance providers offer coverage amounts ranging from $1 million to $100 million per claim, giving businesses the protection they need.

The cyber insurance market is a rapidly growing industry, with a market size of $13 billion in 2023, almost double the $7 billion estimated size in 2020. This growth is expected to continue, with forecasts suggesting that cyber insurance will grow into a $22.5 billion industry by 2025.

The key players in this market include a mix of established vendors, insurance companies, and startup vendors. Some of the major vendors include BitSight, Prevalent, and RedSeal, while insurance vendors like Allianz, AIG, and AXA XL also have a significant presence. These players have adopted various growth strategies to expand their footprint in the market.

Here are some of the key players in the cyber insurance market:

The cyber insurance market is expected to continue growing, with some forecasts suggesting it could reach $22.5 billion by 2025.

This growth is already underway, with the global market size more than doubling between 2020 and 2023, reaching $13 billion.

Businesses dominate the market, accounting for 75 percent of cyber insurance premiums in the United States in 2018.

In contrast, individual cyber insurance premiums accounted for just 25 percent of the market in 2018, worth $500 million.

The COVID-19 pandemic had a profound impact on the cyber insurance market, accelerating the digitalization of businesses and increasing their exposure to cyberattacks.

Many companies were forced to adopt remote work setups, which led to a significant increase in reported cybercrimes. In 2020, the number of reported cybercrimes skyrocketed compared to 2019, with some types of attacks seeing increases of over 197%.

Social attacks, such as phishing, vishing, and pharming, saw a staggering 197.60% increase in 2020. Credit card fraud and investment scams also saw significant increases of 22.50% and 119.80%, respectively.

Identity theft was another area that saw a huge spike, with a 169.90% increase in reported incidents. Ransomware attacks, which involve disrupting a system or network in exchange for a ransom, saw a 20.90% increase in 2020.

The types of cyberattacks that flourished during the pandemic include phishing, disruptive malware, data-harvesting malware, and malicious domains containing keywords like “coronavirus” and “COVID”.

The cyber insurance market is rapidly growing, with a global market size of $13 billion in 2023, almost double the $7 billion estimated size in 2020.

The COVID-19 pandemic accelerated the digitalization of businesses, increasing their exposure to cyberattacks. In 2020, the number of reported cybercrimes skyrocketed, with social attacks (phishing, vishing, pharming, etc.) increasing by 197.60% from 2019.

The pandemic also led to a surge in remote work setups, making companies more vulnerable to cyberattacks. In 2020, the number of reported cybercrimes increased by 169.90% for identity theft and 49.20% for denial of service (including TDoS) attacks.

Cyber insurance can help businesses recover from cyberattacks, including recovering compromised data and dealing with breaches. Legal fees coverage is also available, with some providers offering up to $100 million per claim.

Businesses can protect themselves from cyberattacks by investing in good antivirus software and a VPN. A firewall can also prevent and detect cyberattacks, and encrypting data is another effective way to protect business from cyberattacks.

The key players operating in the cybersecurity insurance market include BitSight, Prevalent, and RedSeal, among others. These companies offer a range of cybersecurity insurance products, including packaged and standalone insurance policies.

The market is expected to grow into a $22.5 billion industry by 2025, with business cyber insurance dominating the market. The rise in social media usage and IoT has led to a growing risk of cyberattacks, making cybersecurity insurance a crucial aspect of business risk management.

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Our research for this report involved a comprehensive analysis of the cyber insurance market, which is projected to reach $20 billion by 2025.

We conducted a thorough review of industry trends and forecasts, including a 10% annual growth rate from 2020 to 2025.

The study also examined the impact of cybersecurity threats on businesses and the increasing demand for cyber insurance as a result.

In the secondary research process, a wide range of sources were used to identify and collect information for this study.

These sources included annual reports, press releases, and investor presentations of companies, which provided valuable insights into the industry.

Secondary sources also included white papers, journals, and certified publications, which offered expert opinions and research findings.

Data was collected from various organizations, such as the Information Systems Security Association (ISSA) and the Information Security Forum (ISF).

These organizations provided information on industry trends, best practices, and emerging threats.

The study also drew on data from regulatory bodies, such as the European Union Agency for Cybersecurity (ENISA), which offered insights into government initiatives and policies.

In addition, trade directories and databases were used to gather information on industry players and their activities.

The study's authors consulted with a range of industry associations, including the UK Cyber Security Association (UKCSA) and the National Association of Software and Services Companies (NASSCOM).

These associations provided valuable insights into industry developments and challenges.

By combining data from these various sources, the study was able to build a comprehensive picture of the industry.

A fresh viewpoint: Cyber Security

To gather information about the cybersecurity insurance market, primary research was conducted, involving interviews with stakeholders from both the supply and demand sides of the market.

Stakeholders from the supply side, such as cybersecurity insurance solutions providers, were interviewed to gather qualitative and quantitative information, including market statistics, revenue data, and market break-ups.

Primary research helped in understanding various trends related to technology, application, deployment, and region, providing a comprehensive view of the market.

The demand side of the market, consisting of financial institutions, investors, and insurance companies, was also interviewed, with stakeholders such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), and Chief Strategy Officers (CSOs), and installation teams of governments/end users sharing their insights on the buyer’s perspective.

The cybersecurity insurance market is a rapidly growing industry, and understanding its scope and objectives can provide valuable insights. The report metrics for this market include market size available for years 2018-2028, with the base year considered 2022 and the forecast period spanning 2023-2028.

The report covers various segments, including offering, insurance coverage, insurance type, compliance requirements, end user, and region. The regions covered are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

The report aims to determine and forecast the global Cybersecurity insurance market by offering (solutions, and services), insurance coverage, insurance type, compliance requirements, end user, and region from 2023 to 2028. It also analyzes the various macroeconomic and microeconomic factors that affect the market growth.

Key market players in the cybersecurity insurance market include BitSight, Prevalent, RedSeal, and SecurityScorecard, among others. The insurance vendors covered are Allianz, AIG, Aon, and Arthur J. Gallagher & Co, while startup vendors include At-Bay, Cybernance, Coalition, and Resilience.

Here are the report objectives in a concise list:

The cyber insurance market is expected to reach $20.7 billion by 2025, driven by the increasing need for businesses to protect themselves against cyber threats.

Cyber attacks are becoming more sophisticated and frequent, with a single breach costing an average of $3.92 million in 2020.

Businesses must be proactive in building their resilience to cyber threats, investing in robust security measures and employee training.

A 2020 survey found that 61% of organizations had experienced a cyber attack, highlighting the need for a proactive approach.

Investing in cyber insurance can provide businesses with the financial protection they need to recover from a cyber attack.

By 2025, it's estimated that 75% of organizations will have cyber insurance, up from 45% in 2020.

This shift towards cyber insurance is driven by the increasing cost of cyber attacks and the need for businesses to have a safety net in place.

To build a resilient future, businesses must prioritize cyber security and invest in the right tools and training for their employees.

By doing so, they can reduce the risk of a cyber attack and protect their reputation and finances.

Consider reading: What Is Cyber Insurance and Why Do You Need It

The cyber insurance market is a rapidly growing industry, with a forecasted size that's sure to impress.

Multiple approaches were adopted to estimate and forecast the Cybersecurity insurance market, including estimating the market size by summating companies' revenue generated through Cybersecurity insurance solutions.

The market size estimation involved identifying key companies offering Cybersecurity insurance by offerings: solutions, and services. Both top-down and bottom-up approaches were used to estimate and validate the total size of the Cybersecurity insurance market.

The research methodology used to estimate the market size includes identifying key players in the market through extensive secondary research and determining the industry's supply chain and market size through primary and secondary research processes.

The Cybersecurity insurance market is expected to grow significantly from 2023 to 2028, with the market size being forecasted and analyzed for various segments, including solutions, services, insurance coverage, insurance type, compliance requirements, end user, and region.

Here's a breakdown of the five main regions that the market is expected to grow in:

The market is expected to be driven by various factors, including the rise in cybercrime, particularly due to the COVID-19 pandemic, which is causing companies and individuals to get cyber insurance.