The cybersecurity insurance market is expected to grow from USD 10.3 billion in 2023 to USD 17.6 billion by 2028, registering a CAGR of 11.4% during the forecast period. The shortage of skilled cybersecurity professionals poses a significant challenge for organizations in managing cyber risks effectively. Cybersecurity insurance provides the necessary expertise and resources to help organizations respond to and recover from cyber incidents.
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Based on insurance type, the standalone segment holds the largest market and highest CAGR during the forecast period.
The demand for dedicated cybersecurity insurance policies and the need to mitigate the risks associated with “silent cyber” have led to the increasing popularity of standalone cybersecurity insurance policies. These standalone policies are projected to surpass packaged cybersecurity insurance policies regarding market growth. Organizations are increasingly concerned about cyber risks and seek specialized coverage solely for cyber risk protection, driving the demand for standalone cyber policies. Insurance providers such as AIG, Lloyd’s, and Allianz are embracing affirmative cyber and witnessing the growth of standalone policies. These policies are designed to address more complex cyber risks compared to packaged cybersecurity insurance. For example, AIG offers its clients a comprehensive cybersecurity insurance package that includes traditional property and casualty policies and a standalone CyberEdge policy. The CyberEdge policy provides policyholders with a broader range of security protection than the packaged endorsement. Key players in the market offering standalone cybersecurity insurance solutions include AXA XL, AIG, Travelers Insurance, Beazley, Zurich, Fairfax, Tokio Marine, Liberty Mutual, and CNA.
Based on insurance provider end users, healthcare & life sciences is projected to register the highest CAGR during the forecast period.
The healthcare industry faces various challenges, including regulatory fluctuations and the ever-evolving landscape of cyberattacks and breaches. Compliance with privacy and data security regulations such as HIPAA and HITECH necessitate the reliance of healthcare organizations on cybersecurity insurance policies to cover penalty fees. The COVID-19 pandemic has exacerbated cyber threats, with healthcare organizations experiencing increased attacks like ransomware and misinformation campaigns. Cybersecurity insurance is a crucial safeguard for healthcare providers, offering financial protection against cybercrimes, ransomware, data breaches, and other cybersecurity incidents.
Based on region, Asia Pacific is projected to register the highest CAGR during the forecast period.
Asia Pacific, an emerging economy, is projected to achieve the highest CAGR in the cybersecurity insurance market during the forecast period. Countries in the Asia Pacific region, such as China, Japan, ANZ, and Singapore, are highly concerned about rising security spending due to increasing cyber threats. With its strong government regulations and technological advancements, Asia Pacific presents promising growth opportunities for the cybersecurity insurance market. Insecure interfaces, data breaches, and data losses are top cybersecurity risks in the region, fueled by rapid connectivity and digital transformation. Asia Pacific faces an 80% higher risk of cyberattacks than other regions. Increasing regulatory measures are expected to drive the demand for cybersecurity insurance. Zurich Insurance predicts significant market growth in APAC, with leading players like AIG, Allianz, Chubb, and Zurich operating in the region.
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Unique Features in the Cybersecurity Insurance Market
Cybersecurity insurance offers broad coverage for a range of cyber risks, including data breaches, ransomware attacks, phishing, and business email compromise. This comprehensive coverage helps organizations mitigate financial losses associated with cyber incidents.
A key feature of cybersecurity insurance is access to expert resources and tools that support incident response and recovery. Insurers often provide specialized services such as forensic investigation, legal assistance, data recovery, and public relations support to minimize the impact of cyberattacks.
Cybersecurity insurance policies are highly flexible and can be tailored to meet the specific needs of businesses across different industries. Organizations can customize coverage based on their risk profile, operational scale, and regulatory requirements.
Insurers are increasingly offering proactive risk assessment and prevention services as part of their cybersecurity insurance packages. These services include vulnerability scanning, risk audits, and employee training to help organizations identify and mitigate potential security gaps.
Cybersecurity insurance provides coverage for business interruption costs resulting from cyberattacks, such as loss of revenue, operational downtime, and recovery expenses. This financial protection ensures business continuity in the aftermath of cyber incidents.
Major Highlights of the Cybersecurity Insurance Market
The scarcity of skilled cybersecurity experts presents a significant challenge for organizations to effectively manage and mitigate cyber risks. Cybersecurity insurance bridges this gap by providing access to specialized expertise, tools, and resources to address cyber incidents efficiently.
The rising number of cyberattacks, including ransomware, data breaches, phishing, and denial-of-service (DoS) attacks, has heightened demand for cybersecurity insurance. Businesses are increasingly relying on insurance to manage the financial and operational consequences of these incidents.
Cybersecurity insurance policies go beyond financial coverage, offering robust incident response and recovery support. This includes forensic investigations, legal counsel, PR management, and data recovery services to minimize damage and ensure swift recovery after cyber incidents.
Organizations across diverse sectors, including healthcare, finance, retail, and manufacturing, are adopting cybersecurity insurance. Industries handling sensitive customer data and critical infrastructure are particularly prioritizing insurance to mitigate regulatory and reputational risks.
Insurers are increasingly offering proactive risk assessment services as part of their policies. These include security audits, vulnerability scans, employee awareness programs, and best-practice recommendations, helping organizations strengthen their security posture.
With stringent data privacy regulations such as GDPR, CCPA, and others in place, cybersecurity insurance provides critical support in managing regulatory compliance. Policies cover legal expenses, fines, and penalties associated with data breaches, ensuring businesses meet regulatory requirements.
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Top Companies in the Cybersecurity Insurance Market
The major vendors covered in the cybersecurity insurance market include BitSight (US), Prevalent (US), RedSeal (US), SecurityScorecard (US), Cyber Indemnity Solutions (Australia), Cisco (US), UpGuard (US), Microsoft (US), Check Point (US), AttackIQ (US), SentinelOne (US), Broadcom (US), Accenture (Ireland), Cylance (US), Trellix (US), CyberArk (US), CYE (Israel), SecurIT360 (US), and Founder Shield (US). The insurance vendors covered in the cybersecurity insurance market are Allianz (Germany), AIG (US), Aon (UK), Arthur J. Gallagher & Co (US), Travelers Insurance (US), AXA XL (US), AXIS Capital (Bermuda), Beazley (UK), Chubb (Switzerland), CNA Financial (US), Fairfax Financial (Canada), Liberty Mutual (US), Lloyd’s of London (UK), Lockton (US), Munich Re Group (Germany), and Sompo International (Bermuda). The startup vendors covered in the cybersecurity insurance market are At-Bay (US), Cybernance (US), Coalition (US), Resilience (US), Kovrr (Israel), Sayata Labs (Israel), Zeguro (US), Ivanti (US), SafeBreach (US), and Cronus Cyber Technologies (Israel).
RedSeal offers a cybersecurity analytics platform to enterprises and develops Security Risk Management (SRM) software for managing and preventing network breaches and failures. It analyzes businesses’ networks, creates an analytics model for monitoring the network’s performance, and provides a digital resilience score enabling users to benchmark and set targets for network security. It provides insights for identifying at-risk assets and corrective actions that must be taken. Its Digital Resilience Score solutions aid clients, brokers, and underwriters to measure their network resilience and ensure network security. It caters to multiple industries, including governments, utilities, healthcare, banking, and insurance. Red Seal’s customer base includes Global 2000 companies and government agencies, such as US federal agencies (DoD), civilian, and intelligence communities. It serves other industries, such as finance, healthcare, retail, and technology sectors, and has presence across North America, Europe, and Asia.
SecurityScorecard is a cloud-based provider of risk scorecards and an information security company that rates the security postures of corporate entities. The product offers real-time threat intelligence and risk awareness by automated real-time monitoring of all risk factors. The product’s features include the status of security levels of every organization and data sharing. Its comprehensive solution range includes enterprise cyber risks, third-party risks, executive-level reporting, cybersecurity insurance, due diligence, and compliance. Financial services, insurance, healthcare, government, retail, and ITeS are the major verticals that SecurityScorecard serves. It also offers monitoring signals of the company, partner networks, categories, and assesses signals at malware events, uses a real-time query to get a collective scorecard of any domain using a search engine. SecurityScorecard’s patented technology is used by organizations to assess their cybersecurity risks, insurance underwriting, and third-party risk management.
BitSight, based in the United States, specializes in security ratings and risk assessment solutions. It provides cybersecurity ratings that help organizations manage third-party risk, monitor security performance, and make data-driven decisions to improve cybersecurity posture. BitSight’s platform collects and analyzes vast amounts of security data to generate security ratings for businesses and their vendors, offering insights into security vulnerabilities and compliance issues.
Prevalent, headquartered in the United States, offers third-party risk management solutions designed to assess and manage risks associated with vendor relationships. The company provides a comprehensive platform that automates vendor risk assessment, monitoring, and remediation processes. Prevalent’s solutions enable organizations to streamline vendor risk management, ensure compliance with regulations, and protect sensitive data from security breaches and cyber threats.
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