A new report from InsightAce Analytic Pvt. Ltd. examines the global cyber insurance market, forecasting significant growth through 2031. The report highlights a projected market size of over $91.22 billion by 2031, with a robust compound annual growth rate (CAGR) of 23.78%.
Rising incidents of cybercrime, driven by increased online activity and social media use, fuel demand for comprehensive insurance policies. Companies are also seeking protection from regulatory penalties for data breaches.
Small and medium-sized enterprises (SMEs) face heightened risks due to limited cybersecurity measures. Technologies like artificial intelligence (AI) and blockchain are poised to enhance risk and expand market opportunities.
The North American market leads in cyber insurance adoption, driven by heightened awareness of personal data protection and the need for financial loss coverage. The Asia-Pacific region follows, with rapid cloud adoption and growing government initiatives to combat cyber threats in emerging economies like China and India.
Challenges
Challenges persist, including a lack of technical expertise and limited historical data on cyber incidents. However, training programs and advancements in cybersecurity intelligence aim to address these barriers.
The report also notes recent cyber incidents, such as the 2022 Medibank breach in Australia, underscoring the urgent need for robust insurance solutions. Key players in the market include Allianz, Aon plc, AXA, Berkshire Hathaway Inc., and Chubb.
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