The Global Cyber Insurance Market, valued at US$9.89 billion in 2022, is anticipated to witness a CAGR of 11.7% from 2023 to 2031. That is from a new report by TNR, The Niche Research. The research delves into the wake left by the COVID-19 pandemic. The international business landscape saw a decline in various sectors, accompanied by a surge in cyberattacks. The pandemic accelerated the digital transformation of companies worldwide, leading to an increased demand for enhanced cybersecurity.
The remote or hybrid workforces adopted by organizations globally have expanded digital attack surfaces. This makes them susceptible to efficient targeting by threat actors for ransomware and other cyber threats. In response, companies are increasingly recognizing the need for cyber insurance to mitigate the risks associated with cyberattacks. Insurance policies have played a crucial role in saving millions of dollars for corporate policyholders affected by data breaches during the pandemic.
The rising number of cyberattacks primarily drives the cyber insurance market’s growth. These policies assist organizations in covering financial losses incurred during a data breach or cyberattack. This includes costs related to investigation, legal services, crisis communication, and customer refunds. The high risk of data loss further contributes to the market’s expansion. This is especially the case given the widespread adoption of remote work arrangements.
North America
Notably, North America dominates the global cyber insurance market. This growth is driven by an increasing number of cyberattacks and the presence of leading technology companies. As businesses integrate digital technologies, the probability of data breaches rises. To address this, companies are leveraging artificial intelligence and emerging technologies to modernize the cyber insurance market. AI aids in processing applications, evaluating cyber risks, and understanding the cybersecurity capabilities of clients.
The competitive landscape in the cyber insurance market is evolving rapidly. Both traditional insurance companies and insurtech startups entering the space. Established companies are incorporating cyber insurance into their portfolios, while startups bring innovation through advanced data analytics and risk assessment techniques.
The market, forecasted to reach US$25.2 billion by 2031, encompasses various segments, including offerings, coverage, organization size, and end-users, with North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America being covered regions. Key players include Allianz Global Corporate & Specialty, AIG, Aon PLC, Berkshire Hathaway, Lockton Companies, Munich Re Group, SecurityScorecard, Chubb, XL Group Ltd, and Zurich Insurance, among others.
Source and Full Report: Global Cyber Insurance Market By Offerings, By Coverage, By Organization Size, By End-user & By Region: Comparative Analysis, Trends and Forecast, Segmental Analysis, 2015 – 2031
Other News: Cyber Insurance Market, Size, Set For Growth(Opens in a new browser tab)