Cyber Insurance Market Size

Cyber Insurance Market Growth Projections and Opportunities

The global cyber insurance market is influenced by escalating geopolitical and economic uncertainties, driven in part by the war in Ukraine and tensions between the United States and China. As digitalization becomes more prevalent, the threat of cyberattacks, whether state-sponsored or private, looms large. These attacks may target critical infrastructure like electricity grids and communication networks, potentially causing catastrophic consequences with significant economic and societal impacts.

Cyber risk has become a top concern for institutions, individuals, and financial markets, ranking among the most likely hazards in the coming years. The cyber risk landscape is evolving rapidly, with a surge in ransomware incidents and heightened cybersecurity concerns. McAfee estimates global monetary losses from cybercrime to exceed USD 945 billion in 2020. The sophistication of cyber attacks is increasing, with hackers deploying advanced tactics like "triple extortion," and the rise of ransomware-as-a-service making it easier for malicious actors to engage.

Despite the escalating cyber threats, many firms and households remain underinsured or uninsured against cyber risks. The cyber insurance market faces a significant protection gap, with premiums covering only a small portion of the damages caused by cyberattacks. Estimates suggest a 90% protection gap, highlighting the need for increased risk protection to enhance societal resilience to cyber risks. Achieving this requires coordinated efforts among enterprises, the insurance sector, and government entities.

The world's increasing reliance on advanced technology has made cybercrime more sophisticated, resulting in substantial global losses, which are growing at a 15% annual pace. The 2017 NotPetya attack marked a shift in focus from data breaches to first-party claims, particularly related to ransomware outbreaks. The proliferation of data privacy legislation has opened the door to litigation, raising long-tail risk exposures for reinsurers and insurers.

The cyber insurance market is a critical component in addressing these evolving cyber risks, requiring collaborative efforts to define policy scopes and manage the associated challenges, including "silent cyber" risks. As businesses and government agencies intensify risk management efforts, the cyber insurance market plays a crucial role in mitigating the financial impact of cyber threats.

The global cyber insurance market has experienced significant growth, with a valuation of USD 10,346.8 million in 2021. The market is projected to witness substantial expansion, reaching USD 69,686.4 million by 2030, at a remarkable Compound Annual Growth Rate (CAGR) of 23.5% during the period from 2022 to 2030.

This study on the global cyber insurance market offers comprehensive insights into industry trends, market dynamics, size, competitive landscape, and growth opportunities. The research report categorizes the market based on components, organization size, insurance types, coverage types, verticals, and regions/countries.