Cyber attacks lead to financial losses of almost $600 billion, which is roughly 0.8% of the worldwide gross domestic product (GDP), every year, according to the latest Economic Impact of Cybercrime report by McAfee. With the world shifting to digital platforms from the simple pen-and-paper mode, the data is becoming increasingly vulnerable to attacks by hackers and thieves. While the cyber security domain is itself going through advancements, such as the integration of artificial intelligence (AI), cyber criminals are still one step ahead.
Thus, with the increasing incidence of cyber attacks and the resulting need of companies as well as individuals to protect themselves from losses, the cyber insurance market is growing around the world. Most of the cyber crimes are conducted with the motive of financial prosperity, for instance the May 2017 ransomware, which infected more than 300,000 computers in over 100 countries, as part of a worldwide extortion attempt. Hence, individual owners and companies are rapidly seeking cyber insurance, risk consulting, and claims services.
Among them, claims services have been quite high in demand in the past, as people have lost millions of dollars due to cyber attacks, which has necessitated the need for reimbursements and coverage. Due to the same reason, customers are expected to rapidly opt for risk consulting services in the coming years, to analyze the vulnerabilities in their network and servers and be better prepared for a rainy day. By knowing their risk beforehand, end users can adopt robust cyber security measures to thwart any internet-based attack.
The risk of cyber attacks is high for large as well as small and medium enterprises (SMEs). Due to the fact that plumper sums can be extorted from larger companies, hackers majorly target these. For instance, the distributed denial of service (DDoS) attack of October 2016 impacted the operations of several multinational firms, including Airbnb, Netflix, Spotify, and Twitter. It is because of these reasons that large enterprises have sought cyber insurance services more than SMEs in the past.
GLOBAL CYBER INSURANCE MARKET
By Enterprise Size
- Small and Medium Enterprise
By Service
By Industry
By Region
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