The global cyber insurance market is expected to grow by $42.81 billion between 2022 and 2027, at a CAGR of 35.92%, according to a new report by Technavio. The market growth is being driven by a number of factors, including the rising incidence of cyberattacks, the increasing awareness of cyber insurance among businesses and individuals, and the growing adoption of technologies.
North America to Account for Majority of Market Growth
North America is expected to account for the majority of the market growth during the forecast period, with a CAGR of 57%. The region is home to a number of large enterprises and small and medium-sized enterprises (SMEs) that are increasingly adopting technologies to improve their operations. This has made them more vulnerable to cyberattacks. Additionally, the increasing awareness of cyber insurance in the region is driving the market growth.
Large Enterprises to Drive Market Growth by Type
The large enterprises segment is expected to drive the market growth by type during the forecast period, with a CAGR of 48%. Large enterprises are at a higher risk of cyberattacks due to the complexity of their IT infrastructure and the large amount of data they store. Additionally, large enterprises are more likely to have cyber insurance policies in place to protect themselves from financial losses.
Standalone Solutions to Dominate Market by Solution
The standalone solutions segment is expected to dominate the market by solution during the forecast period, with a CAGR of 38%. Standalone solutions offer more flexibility and customization options than packaged solutions. Additionally, standalone solutions are more likely to be preferred by large enterprises that have complex cyber insurance needs.
Key Drivers of Market Growth
- Widespread adoption of technology
- Rising incidence of cyberattacks
- Increasing awareness of cyber insurance
- Growing demand for cyber insurance from businesses and individuals
Key Trends in the Market
- Increased demand for cyber insurance
- Growing adoption of cloud-based cyber insurance solutions
- Increasing focus on cyber risk prevention and management
Challenges Hinder Market Growth
- Lack of standardization in cyber insurance policies
- High cost of cyber insurance premiums
- Complexity of cyber insurance policies
Major Players in the Market
- Aon plc
- At Bay Inc.
- AXA Group
- Beazley Plc
Summary
The global cyber insurance market is expected to grow rapidly during the forecast period, driven by a number of factors, including the rising incidence of cyberattacks, the increasing awareness of cyber insurance among businesses and individuals, and the growing adoption of technologies. North America is expected to account for the majority of the market growth during the forecast period. The large enterprises segment is expected to drive the market growth by type during the forecast period. The standalone solutions segment is expected to dominate the market by solution during the forecast period. The key drivers of market growth are the widespread adoption of technology, the rising incidence of cyberattacks, the increasing awareness of cyber insurance, and the growing demand for cyber insurance from businesses and individuals. The key trends in the market are the increased demand for cyber insurance, the growing adoption of cloud-based cyber insurance solutions, and the increasing focus on cyber risk prevention and management.
Get the report here.
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