The cyber insurance market is set to expand significantly, reaching a projected value of USD 68.35 billion by 2032, up from USD 8.2 billion in 2022. This forecast comes from Market Research Future (MRFR), which anticipates a compound annual growth rate (CAGR) of 26.57% between 2023 and 2032. An increase in cyber threats linked to the extensive online presence of a global population largely drives the growth.
Cyber insurance is a financial safeguard for businesses and individuals against the consequences of cyber incidents. Those can include data breaches, ransomware attacks, and network outages. As threats grow in sophistication and frequency, the demand for such insurance has risen sharply.
North America
North America, particularly the United States, leads the global cyber insurance market. The country’s large economy, high exposure to cyber risks, and comprehensive regulatory framework contribute to this dominance. The U.S. accounts for a major portion of global cyber insurance premiums. This is due to strict data protection laws and a high incidence of cyber attacks targeting businesses of all sizes.
The MRFR report details various aspects of the market, such as on-premises and cloud deployment of security solutions, market dynamics, including the increase in cyber-attacks and regulatory pressures, and the types of coverage provided. Coverage types range from data breach response to cyber extortion.
The report also highlights a growing demand for cyber insurance policies as businesses increasingly recognize the need to protect against cyber risks. This is in response to an evolving risk landscape, with insurers broadening their coverage to include emerging threats like ransomware and social engineering attacks.
Key players in the market include Tata Consultancy Services Limited, Guy Carpenter and Company LLC, and Chubb Limited. These companies are responding to escalating cyber threats and strict regulatory compliance demands, underscoring the vital role of cyber insurance in today’s digital economy.
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