Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 20.42 Billion |
| Market Size (2030) | USD 40.55 Billion |
| Growth Rate (2025 - 2030) | 14.70% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Cybersecurity Insurance Market Analysis by Mordor Intelligence
The cybersecurity insurance market size stands at USD 20.42 billion in 2025 and is forecast to reach USD 40.55 billion by 2030, translating into a 14.7% CAGR. Strong demand stems from regulatory mandates such as the EU’s Digital Operational Resilience Act (DORA) and the United States Securities and Exchange Commission (SEC) four-day disclosure rule, both of which push companies to secure balance-sheet protection against fines and operational losses. Additional momentum comes from the surge in ransomware now striking every 11 seconds board-level demand for quantified cyber-risk metrics, and new parametric offerings that cut claims settlement time for small and medium enterprises (SMEs). Rising cloud reliance, especially hybrid and multi-vendor architectures, is forcing insurers to refine accumulation controls, while investors experiment with tokenized cyber insurance-linked securities to unlock fresh capacity.
Key Report Takeaways
- By coverage type, first-party protection led with 42.7% of cybersecurity insurance market share in 2024, whereas third-party liability is set to record a 14.9% CAGR through 2030.
- By insurance type, stand-alone policies captured 53.9% of the cybersecurity insurance market size in 2024 and are expanding at a 15.4% CAGR to 2030.
- By organization size, large enterprises held 64.4% of the cybersecurity insurance market size in 2024, while SMEs show the fastest 15.1% CAGR.
- By end-user industry, BFSI retained 28.7% revenue share in 2024; manufacturing is forecast to grow at a 16.3% CAGR.
- By geography, North America commanded 36.2% revenue share in 2024; Asia-Pacific is advancing at a 16.7% CAGR.
Global Cybersecurity Insurance Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cloud-first digitalization upsizes exposure | +2.8% | Global, concentrated in North America and EU | Medium term (2-4 years) |
| Regulatory mandates raise liability | +3.2% | North America and EU, expanding to Asia-Pacific | Short term (≤2 years) |
| Board-level focus on quantifying cyber risk | +2.1% | Global, led by North America | Medium term (2-4 years) |
| SME-specific low-cost parametric covers | +1.9% | Europe and APAC, spill-over to Middle East and Africa | Long term (≥4 years) |
| “InsurSec” bundles of security + insurance | +1.7% | Global, early adoption in North America | Medium term (2-4 years) |
| Tokenized cyber ILS | +1.4% | Capital markets in Bermuda and London | Long term (≥4 years) |
| Source: Mordor Intelligence | |||
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Cloud-First Digitalization Upsizes Cyber-Loss Exposure
Migration to cloud architectures enlarges the attack surface and amplifies systemic outage risk. The 2024 CrowdStrike software failure generated USD 5.4 billion in economic losses and exposed how a single provider disruption can trigger thousands of simultaneous claims. Munich Re responded with Cloud Protection+, a product targeted at Google Cloud workloads that reimburses business-interruption losses tied to provider outages. Hybrid environments heighten complexity, while human-error incidents in healthcare cloud systems rose 13%, representing 58% of sector breaches. Insurers now require multi-factor authentication and evidence of hardened configurations before binding cover.
Regulatory Mandates Raise Liability Stakes
DORA obliges EU financial institutions to report material cyber incidents within 4 hours, and the SEC stipulates a 4-day disclosure for U.S.-listed firms, creating twin obligations for multinationals.[1]Patrice Perche, “Understanding DORA: The EU’s Digital Operational Resilience Act,” fortinet.comNon-EU vendors serving European banks must also comply, widening the addressable pool for coverage. Latin America mirrors the trend; 75% of internal-audit leaders rank cyber as the top risk due to escalating regulatory scrutiny. Insurers are adding extensions that fund remediation costs and ongoing compliance monitoring.
Board-Level Focus on Quantifying Cyber Risk
Shareholder value at risk has shifted cyber discussions to the boardroom. Enterprises deploy AI-driven quantification tools to map financial exposure, aligning limits and deductibles with loss-distribution models. Captive structures and alternative risk transfer (ART) gain traction as large buyers seek flexibility beyond the commercial tower. The approach supports granular underwriting and accelerates quote-to-bind cycles.
SME-Specific Low-Cost Parametric Covers Emerging
Descartes Underwriting’s Cyber Shutdown Cover triggers on preset downtime thresholds and pays claims within 3 weeks, cutting the administrative burden that historically deterred SMEs. Swiss Re’s CyberSolution 360° bundles 24/7 monitoring, incident-response, and insurance for firms with 10–250 employees, addressing the gap where only 10% of SMEs carry cover.[2]Swiss Re Institute, “CyberSolution 360°: Closing the SME Protection Gap,” swissre.comStarpeak’s micro-cover priced below GBP 20 yearly for micro-firms shows price points conducive to mass adoption.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Actuarial data scarcity and modeling gaps | -2.1% | Global, most acute in emerging markets | Medium term (2-4 years) |
| High premiums and retentions for SMEs | -1.8% | Global, price-sensitive markets | Short term (≤2 years) |
| War and systemic-risk exclusions | -1.3% | Global, critical infrastructure | Long term (≥4 years) |
| Reinsurance capacity caps | -1.1% | Developed markets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Actuarial Data Scarcity and Modeling Uncertainty
Cyber losses lack the long time series seen in natural-catastrophe lines, hampering credibility of tail-risk models; correlated events magnify pricing error. [3]Organisation for Economic Co-operation and Development, “Challenges for the Insurance Sector in Cyber Risk,” oecd.org Carriers are investing in proprietary platforms that ingest real-time threat-intelligence, yet gaps persist in emerging markets where breach reporting is limited.
High Premium and Retention Levels Deter SMEs
While 75% of large corporations hold cover, only 25% of SMEs do. Budget constraints and deductibles running into mid-six-figures dissuade take-up. Technological models such as Coalition’s Active Insurance, which embeds continuous scanning and alerts, are lowering loss frequency and enabling affordable pricing tiers.
Segment Analysis
By Coverage Type: Third-Party Liability Gains Momentum
First-party coverage retained a 42.7% cybersecurity insurance market share in 2024, driven by claims for business-interruption, incident-response, and data-rebuild costs. Third-party liability is accelerating at a 14.9% CAGR as litigation and regulatory penalties rise, nudging boards to buy higher limits. Manufacturers increasingly opt for blended policies that address operational disruption and downstream supply-chain liability, reflecting how a single breach can trigger both internal and customer losses.
Bundled covers that merge first- and third-party protections appeal to healthcare and critical-infrastructure buyers seeking streamlined administration. Hospitals favor packages that wrap HIPAA violation fines with ransom-payment reimbursement, ensuring no gaps between operational and legal exposures. Underwriters, for their part, are refining policy language to clarify coverage for contingent-business-interruption events tied to third-party IT vendors.
Note: Segment shares of all individual segments available upon report purchase
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By Insurance Type: Stand-Alone Policies Drive Innovation
Stand-alone contracts captured 53.9% of the cybersecurity insurance market size in 2024 and will expand at 15.4% CAGR because property-and-casualty riders lack the parameters to address ransomware, cloud-outage, or social-engineering triggers. Dedicated forms let carriers incorporate granular scanning data and dynamic endorsements, offering turnaround times of a few hours via algorithmic underwriting bots.
Endorsement-based solutions still appeal to mid-market buyers wanting administrative simplicity. Yet the flexibility of stand-alone wording supports emerging add-ons such as cryptojacking cover or voluntary shutdown reimbursement. Automated quote systems deployed by InsurTechs At-Bay and Cowbell cut distribution costs and increase pricing accuracy, reinforcing the stand-alone model’s leadership.
By Organization Size: SME Segment Accelerates Adoption
Large organizations held 64.4% of the cybersecurity insurance market size in 2024, reflecting regulatory scrutiny and robust budgets. Momentum is shifting as SME adoption races ahead at 15.1% CAGR. The change is fueled by parametric triggers, low-touch onboarding, and integration of monitoring tools that demonstrate immediate value.
Government-backed voucher schemes in Singapore and France subsidize premiums for micro-firms, further closing the protection gap. InsurSec bundles provide SMEs with endpoint detection plus an insurance backstop in a single subscription, lowering perceived complexity. For large corporates, captives, and cyber catastrophe bonds, diversify risk transfer and keep premium spend predictable.
Note: Segment shares of all individual segments available upon report purchase
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By End-User Industry: Manufacturing Emerges as Growth Leader
BFSI remained the largest buyer, holding 28.7% share, amid strict data-protection regimes and high ransomware frequency. Manufacturing’s 16.3% CAGR through 2030 positions it as the fastest-expanding vertical, owing to the convergence of operational-technology and information-technology systems that attackers increasingly exploit. Supply-chain attacks triggered 64% of notable incidents in 2024, encouraging factories to purchase higher limits and contingent-business-interruption endorsements.
Healthcare faces breach costs averaging USD 10.93 million. Retail and e-commerce companies tighten payment-card coverage as fraud attempts multiply alongside digital-wallet adoption. Public-sector demand grows slowly, constrained by procurement cycles, yet national-critical-infrastructure operators are beginning to ring-fence budgets for cyber transfer as insurance becomes a licensing requirement in certain jurisdictions.
Geography Analysis
North America retained 36.2% of 2024 premium thanks to mature disclosure norms, deep actuarial datasets, and a robust ecosystem of brokers, reinsurers, and capital-markets alternatives such as the USD 575 million of cyber catastrophe bonds issued in 2024. However, war-risk exclusions and aggregation caps on critical-infrastructure covers remain sticking points, prompting debate over federal backstop programmes.
Asia-Pacific posts the fastest 16.7% CAGR through 2030. China’s data-sovereignty rules, Japan’s manufacturing integration, and India’s booming fintech sector enlarge the region’s risk pool. Market entry by global carriers plus rising local capacity are shrinking the protection gap, though only 15% of eligible organisations currently buy cover.
Europe enjoys stable growth underpinned by GDPR and DORA. London’s market anchors capacity, and Germany along with France accelerate adoption within the Mittelstand manufacturing base. Fragmented member-state rules complicate multinational placement, but parametric SME covers emerge as a unifying solution. Nordic countries, already digital leaders, combine strong privacy ethos with early uptake of bundled security-plus-insurance products.
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Competitive Landscape
Traditional carriers AIG, Chubb, Munich Re—retain scale advantages in capital and claims infrastructure, yet market dynamism increasingly resides with technology-first entrants. Coalition’s Active Insurance model couples external-surface scanning with real-time alerts, cutting claims frequency 7% year-over-year and lowering average loss to USD 115,000. At-Bay, Cowbell, and Zeguro replicate this playbook, forcing incumbents to invest in predictive analytics.
Strategic alliances proliferate. Chubb embeds CrowdStrike telemetry into underwriting, while Travelers partners with IBM’s X-Force to speed incident response. Schroders Capital piloted tokenized reinsurance contracts on public blockchains, promising lower friction and broader investor access to cyber-risk pools.
Moderate fragmentation persists: the top five carriers control close to 40% of global premiums, and a long tail of regional insurers plus managing general agents compete in the distribution niche or sector expertise. Capacity constraints at the retrocession layer hinder rapid share shifts, reinforcing incumbent relevance even as InsurTechs command mindshare with active-defence propositions.
Cybersecurity Insurance Industry Leaders
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The Chubb Corporation
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AXA XL
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Beazley
-
Allianz (AGCS)
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AIG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2025: Munich Re reported Q1 2025 net result of EUR 1.1 billion (USD 1.17 billion) and emphasized continued development of cyber covers while reinsurance renewals grew 6.1%.
- May 2025: Coalition released its 2025 Cyber Claims Report highlighting a 7% decline in claim frequency and USD 115,000 average loss.
- May 2025: AIG’s Q1 2025 Global Commercial net premiums written rose 8% year-over-year to USD 4.5 billion.
- April 2025: Travelers posted record Business Insurance premiums of USD 5.7 billion and lifted its dividend for the 21st year.
- February 2025: Sophos completed its USD 859 million acquisition of Secureworks, adding 28,000 customers to its managed detection platform.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the cyber-security insurance market as gross written premiums generated worldwide from stand-alone or packaged policies that indemnify organizations for first-party losses and third-party liabilities arising from cyber events, including ransomware, data breaches, and business interruption. According to Mordor Intelligence, the model captures carriers, captives, and managing general agents that actively underwrite these risks.
(Scope exclusion) Personal cyber cover sold to individuals and any re-insurance transfers are left outside this assessment.
Segmentation Overview
- By Coverage Type
- First-party Coverage
- Third-party Liability
- Bundled/Hybrid
- By Insurance Type
- Stand-alone Cyber
- Packaged/Endorsement
- By Organisation Size
- Small and Medium Enterprises (SMEs)
- Large Enterprises
- By End-user Industry
- BFSI
- Healthcare
- Retail and e-Commerce
- IT and Telecom
- Manufacturing
- Government and Public Sector
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- United Kingdom
- Germany
- France
- Sweden
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- Middle East and Africa
- Saudi Arabia
- United Arab Emirates
- Turkey
- South Africa
- Rest of Middle East and Africa
- North America
Detailed Research Methodology and Data Validation
Primary Research
Mordor analysts spoke with underwriters, brokers, risk managers, and cyber-security consultants across North America, Europe, and Asia-Pacific. These conversations clarified typical policy limits, retention trends, and how ransomware severity is reshaping pricing, thereby filling data gaps and validating desk inputs.
Desk Research
We mapped the universe of cyber-risk policies through regulator filings and open datasets such as NAIC statutory statements, EIOPA Solvency II disclosures, and Lloyd's syndicate results, which offer premium volume, claims ratios, and geographic splits. Industry associations, such as the Geneva Association and the Association of British Insurers, supplemented these with take-up rates and loss-event bulletins. Financials and strategic moves of leading carriers were screened on D&B Hoovers, while news flow on pricing cycles and large claims was tracked on Dow Jones Factiva. This list illustrates, not exhausts, our secondary groundwork.
Market-Sizing & Forecasting
A top-down build begins with 2024 national premium pools reported by regulators, then adjusts for exchange rates and missing territories before segmenting by coverage type and industry. Bottom-up cross-checks, carrier roll-ups, sampled average premium × policy counts, and broker channel checks calibrate totals. Key variables in our multivariate regression forecast include corporate cyberattack frequency, average ransom paid, policy take-up among SMEs, regulatory mandates coming into force, and median premium rate movements. Scenario envelopes were stress-tested and outliers reconciled through expert re-interviews.
Data Validation & Update Cycle
Every draft runs through anomaly screens, peer review, and senior analyst sign-off. Models refresh annually; interim updates trigger when quarterly filings or major loss events shift fundamentals.
Why Mordor's Cybersecurity Insurance Baseline Commands Reliability
Published estimates often diverge because firms choose different premium pools, policy mixes, and update cadences.
Key gap drivers include whether small packaged endorsements are counted, how currency conversions are timed, and if future premium rate softening is factored or ignored. Mordor's scope aligns with regulator definitions, applies live FX rates, and revisits rate assumptions with brokers each quarter, which explains the contrast shown below.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 20.42 B (2025) | Mordor Intelligence | - |
| USD 16.54 B (2025) | Global Consultancy A | Excludes micro-enterprise packaged covers; uses 2023 FX averages |
| USD 20.88 B (2024) | Industry Research House B | Projects premiums before regulator revisions; limited SME sampling |
| USD 21.67 B (2025) | Trade Journal C | Applies higher assumed rate hikes and omits carrier self-retention |
These comparisons show that once scope and rate assumptions are normalized, Mordor's balanced baseline remains the most transparent and repeatable reference for strategic decision-making.
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Key Questions Answered in the Report
What is the current cybersecurity insurance market size and growth outlook?
The cybersecurity insurance market stands at USD 20.42 billion in 2025 and is projected to reach USD 40.55 billion by 2030, reflecting a 14.7% CAGR.
Which segment is expanding the fastest within the cybersecurity insurance market?
Third-party liability coverage is growing the quickest, posting a 14.9% CAGR through 2030 as regulatory fines and litigation rise.
Why are SMEs adopting cyber cover more rapidly now?
Low-cost parametric policies and InsurSec bundles cut underwriting complexity and premiums, driving a 15.1% CAGR in SME uptake.
How do new regulations influence demand for cyber insurance?
DORA and the SEC’s four-day disclosure rule significantly raise liability exposure, pushing companies worldwide to secure higher limits to offset potential penalties.
What role do cyber catastrophe bonds play in market capacity?
Cyber cat bonds transfer systemic risk to capital markets, adding USD 800 million in capacity since 2023 and diversifying carriers’ retrocession options.
Which region is forecast to grow fastest and why?
Asia-Pacific is set to post a 16.7% CAGR because of rapid digitalisation, evolving national regulations, and expanding insurer presence across China, Japan, and India.
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