The global cyber insurance market was valued at $11,904.6 million in 2022, and this number is expected to reach $48,328.4 million by 2030, advancing at a CAGR of 19.1% during 2022–2030, as per P&S Intelligence. This is accounted for the snowballing number of malware, virus, and other kinds of attacks on IT systems, the increasing regulation regarding cybersecurity, and the execution of related insurance as a risk mitigation strategy.
The healthcare category is forecast to experience
the fastest growth, progressing at a CAGR of above 20% in the coming years. The
snowballing digitalization and increasing usage of the internet in the healthcare
industry for ease of accessibility to an entity’s information have formed
online weaknesses, because of which vital records are being unprotected from
external and internal threats.
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| Cyber Insurance Market Size and Share Analysis Demand Forecast to 2030 |
In 2022, North America held the highest revenue
share, of approximately 50%. This can be accounted to the existence of key
companies, including Chubb Group Holdings Inc., Lockton Incorporated, and
American International Group Inc. in the continent.
Additionally, the amplified concentration on the
legal framework of cybersecurity and the growth of related government
guidelines are other factors supporting regional growth. Compulsory legislation
concerning the safety of IT networks in numerous states in the U.S. and the
increasing acceptance of such guidelines among SMEs in the continent have
directed to the more acceptance of cyber insurance policies.
APAC's cyber insurance market is estimated to
witness the fastest growth in the coming years. Numerous developing countries
in the APAC, like India and China, are confronting issues regarding cloud
security and breaches in blockchain systems. Because of this, the governments
of such countries are taking planned measures, including the execution of
guidelines to advance IT security and the launch of several initiatives to spread
knowledge about cyberattacks.
In 2022, the data breach category generated the
highest revenue. With administrations becoming more dependent on digital data,
workforce mobility and cloud computing, cases of breaches of vital data have
increased exponentially. Sensitive data of organizations and customers are
normally stored on companies’ databases, cloud servers, and local machines,
which, many times, are vulnerable to breaches.
In 2022, the standalone category held the larger
market share, of approximately 60%. Standalone guidelines offer establishments
the capability to rapidly reimburse first- and third parties for losses in the
occurrence of a data breach. Such guidelines compensate the money insured
because of a breach, such as credit-monitoring costs, data restoration costs,
IT forensic costs, public relations expenses, and cyber extortion.
Hence, the snowballing number of malware, virus, and
other kinds of attacks on IT systems, the increasing regulation regarding
cybersecurity, and the execution of related insurance as a risk mitigation
strategy are major factors driving the cyber insurance industry's
growth.
