According to an analysis by Market, the global cyber insurance market is expected to reach $90.6 billion by 2033, growing at a CAGR of 223%。By the end of 2024, the industry is expected to reach $14.8 billion, up sharply from the $12.1 billion estimated valuation in 2023.
The report highlights the factors that will drive more and more businesses to seek cyber insurance coverage over the next 10 years. For example, cyber threats and attacks are on the rise. Evolving regulatory environment. The impact of cyber incidents on the economy is increasing. and increasing awareness and understanding of cyber risks.
According to the analysis, by 2023, independent cyber insurance policies will account for more than two-thirds (68%) of the market share.
These policies are tailored to the specific cyber threats faced by businesses, including data breaches and ransomware. Standalone strategies are especially appreciated by large organizations and industries that are highly vulnerable to cyber threats, such as finance and healthcare.
Third-party insurance also dominated the cyber insurance market last year, with a share of 621%。These policies cover liability and legal fees incurred as a result of breaches affecting customer and other parties' data.
Businesses dealing with sensitive customer data are increasingly investing in third-party coverage due to the risk of litigation and fines with the growth of data protection regulations. In 2023, large corporate insurance accounted for nearly three-quarters of the cyber insurance market value (72.).4%)。
This is mainly because large enterprises, which often operate globally, have large and complex digital infrastructures, which puts them at particularly high risk of disruptive cyber incidents.
The vertical with the largest market share is Banking, Financial Services, and Insurance (BFSI) with 283%。
This may be because of the sensitive financial information that these industries handle, making them a prime target for cybercriminals. These businesses tend to invest heavily in cyber insurance policies to mitigate the financial and reputational risks associated with events such as data breaches and fraud.
By region, North America holds the largest cyber insurance market share at 376% ($4.5 billion). This advantage can be attributed to the region's advanced technological infrastructure, the presence of large global companies, and the high awareness of cyber threats.
The report outlines several ways cyber insurers can increase their value to the business in the face of rising cyber threats, tailoring strategies to specific industries, such as healthcare, finance, or manufacturing, to address their unique risk and compliance requirements. Provide comprehensive risk management services to help enterprises proactively manage cyber risk. These include cybersecurity assessments, incident response plans, and employee training. and partnering with cybersecurity firms to integrate capabilities such as risk assessment services, threat intelligence, and incident response capabilities.