Global Cyber security insurance Market Expected to Reach US$ 32,543.6 Million by 2026

Published | 06 October 2018

Growth in the Cyber insurance market

According to a new market report published by BlueWeave Consulting, the global cyber security insurance market was valued at US$ 4,222.3 Mn in 2017 and is expected to expand at a CAGR of 25.3% from 2018 to 2026, reaching US$ 32,543.6 Mn by the end of the forecast period. According to the report, North America was the largest contributor in terms of revenue to the cyber security insurance market in 2017.

The global market for cyber security insurance is segmented on the basis of service type, enterprise size, industry vertical and geography. On the basis of service type, the market is segmented into risk management, integrity, forefront portfolio, third party liability, and others. Risk management is expected to account a 26.8% market share in 2018

Healthcare industry is highly affected by cyber-crime

On the basis of industry vertical, the market is divided into banking and financial services, telecom and IT, government, healthcare, education, manufacturing, travel and hospitality and others. Financial services, energy and utilities, and telecommunications are among the most investigated industries in APAC, highlighting the need for higher awareness levels, stronger mitigation measures, and improved cyber security postures

North America accounts for more than 80% of market share in 2018

Geographically, the global cyber security insurance market is bifurcated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. The Asia Pacific is the most promising markets for cyber security insurance market and is slated to offer players a host of opportunities in the coming years. In the Indian market, the high demand for cyber insurance policies is due to the telecom revolution. Moreover, increase digitization of the economy further boosts the demand. Latin America is experiencing significantly more data breaches and with that, increased sales of cyber insurance. Norton Security has reported cybercrime cost Brazil roughly US$8 billion and Mexico US$3 billion in 2015. Cyber security insurance coverage is still in its at beginning stage in Latin America.

Major industry players in cyber security insurance market are adopting different strategic initiatives such as mergers and acquisitions, partnerships, and collaborations for technologies and new product development.

In June 2017, Zurich Brasila, subsidiary of Zurich Insurance Group, has launched insurance coverage for cyber-related risks, amid the fast-growing use of internet among companies and individuals. The company will offers protection in nations more exposed to cyber-attacks, such as the US, the UK and China, will now offer this product in Brazil due to increasing demand.

In June 2014, the UK Government launched a joint initiative with some major British insurers to increase the level of IT security in UK companies called the “Cyber Essentials Scheme”, it is based on certificates and will ensure that certified organizations have a certain amount of security measures in place. Cyber Essentials has been developed in close consultation with the insurance industry and is backed by AIG, Marsh, Swiss Re, the British Insurance Brokers’ Association (BIBA) and the International Underwriting Association (IUA).

The global cyber security insurance market includes key players such as XL Group Ltd., American International Group Inc., Zurich Insurance Co. Ltd, AON PLC, Allianz Global Corporate & Specialty, Munich Re Group, Chubb, HSB, BCS financial corporation, Marsh & McLennan Companies, Inc., Markel Corp, Traveler's group, Hiscox, Beazely Insurance group and others.