The global Cybersecurity Insurance Market is poised to experience robust growth, rising from USD 14.18 billion in 2023 to an estimated USD 32.52 billion by 2028. This reflects a CAGR of 18.06% during the forecast period. This analysis from Research And Markets. The surge is propelled by the escalating pace of digitalization, cloud development, Big Data, IoT, and AI, intensifying the workload on already strained IT teams.
In the changing landscape of critical infrastructure and business networks, technological advances and communication tools are impacting how countries operate. The increasing value of personal data has led to a surge in cyber threats. This has prompted a growing demand for cybersecurity measures. As organizations grapple with the challenges, they turn to innovative insurance models and technologies like microsharding to address risks.
The maturity of the cybersecurity insurance space is prompting insurers to consider a broader range of security controls. This emphasizes the importance of an organization’s data sensitivity and its ability to obscure it effectively. However, challenges persist, with insurers struggling to define precise criteria for cyberattacks and assess the impact of emerging technologies like IoT.
The COVID-19 pandemic has accelerated the need for cybersecurity insurance. Companies have increasingly combined insurance with cybersecurity tools to manage cyber risks. Notably, Coalition, a cyber insurance company, acquired BinaryEdge to enhance risk evaluation using machine learning and natural language processing.
Financial Sector
In the financial sector, the Banking, Financial Services, and Insurance (BFSI) industry faces a significant share of cyber threats. This necessitates increased adoption of cybersecurity insurance. Highly regulated and prone to identity fraud, the industry has witnessed substantial breaches. That has prompted regulatory bodies like the Federal Trade Commission to enforce stricter data security measures.
The United States dominates the global cybersecurity insurance market. Cyberattacks are surging and connected devices are only growing in number, driving this expansion. Losses in the billions annually to cyber activity are prompting increased demand for cybersecurity insurance solutions. Government initiatives, such as establishing the Cybersecurity and Infrastructure Security Agency (CISA), further bolster the region’s cybersecurity defenses.
As organizations recognize its role in safeguarding sensitive data and mitigating economic losses the demand for cybersecurity insurance continues to grow.
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