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.
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.
