Cybersecurity Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Global Cyber Security and Insurance Industry Analytics and is segmented by Size of Organization (Small and Medium Enterprises [SMEs] and Large Enterprises), End-user Industry (Healthcare, Retail, BFSI, IT and Telecom, and Manufacturing), and Geography.

Cybersecurity Insurance Market Size

Cybersecurity Insurance Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 16.09 Billion
Market Size (2029) USD 39.58 Billion
CAGR (2024 - 2029) 19.72 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Cybersecurity Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Cybersecurity Insurance Market Analysis

The Cybersecurity Insurance Market size is estimated at USD 16.09 billion in 2024, and is expected to reach USD 39.58 billion by 2029, growing at a CAGR of 19.72% during the forecast period (2024-2029).

Increasing digitalization and rapid development in the cloud, Big Data, IoT, and artificial intelligence (AI) in business and society and the growing connectivity of everything have increased the workload of already strained IT teams.

  • IT advances, communication technologies, and the smart energy grid are changing the landscape of all every country's critical infrastructure and business networks. However, with rapidly evolving technology comes rapidly advancing threats. Personal data is valuable, which prompts cybercriminals to commit crimes, where personal information will be sold on the dark web, like a credit card number, identity, medical records, etc. It is among the few factors that have led to an increased demand for cybersecurity.
  • Cloud computing is one of the most rapidly growing recent technologies, eliminating the traditional boundaries of IT, creating new markets, spurring the mobility trend, and enabling advances in unified communications. Various tech stakeholders and organizations are turning to new insurance models to mitigate the risks of storing sensitive data in the modern cybersecurity landscape.
  • As the cybersecurity insurance space continues to mature, insurers will consider a broader range of security controls and technologies in their assessments. Hence, the sensitivity level of an organization's data and its ability to adequately obscure it will play a key role in determining the overall risk, which is driving the adoption of new technologies like micro shading. Microsharding technology breaks data into fragments that can be as small as single-digit bytes before polluting and distributing shards to multiple locations to reduce the attack surface and eliminate data sensitivity.
  • Cyber insurance policies and businesses cover a wide range of risks, and insurers do not always agree on which loss events are covered. Cyber events have characteristics that make it challenging to write comprehensive policies, such as limited loss history, the unreliability of past data when predicting future events, and the possibility of a large-scale attack with highly correlated losses across companies and industries. Furthermore, insurers are still working on precise and accurate criteria for cyberattacks and the impact of new technologies like the Internet of Things. Cyber insurance coverage could be ineffective and expose firms to considerable damage if big cyberattacks occur without well-defined dangers and an understanding of how they affect insurers.
  • The pandemic accelerated the adoption of digital tools, which has driven a greater need for cybersecurity insurance coverage. Various companies have been looking forward to combining insurance with cybersecurity tools to help businesses mitigate and manage cyber risk. In 2020, Coalition, a cyber insurance company, acquired BinaryEdge, a platform akin to BitSight and Security Scorecard that searches the internet and maps an organization's attack surface. The Coalition has merged terabytes of data from BinaryEdge with claims and other cybersecurity data sources to enable its risk evaluation process with machine learning and natural language processing. Further, due to the ongoing COVID-19 pandemic, countries worldwide have implemented preventive measures. With schools being closed and communities being asked to stay at home, multiple organizations found a way to enable employees to work from their homes. This resulted in a rise in the adoption of video communication platforms. In the past 6-8 months, the new domain registration on these video communication platforms, including Zoom, rapidly increased.

Cybersecurity Insurance Market Trends

The BFSI Segment is Estimated to Hold a Significant Share

  • The BFSI industry is one of the critical infrastructure segments facing multiple data breaches and cyberattacks, owing to the massive client base that the sector serves and the financial information at stake. Cybercriminals are optimizing myriad diabolical cyberattacks to immobilize the financial industry since it is a highly lucrative operating model with amazing profits and the bonus of relatively little risk and detectability. Trojans, ATMs, ransomware, data breaches, institutional invasion, data thefts, fiscal breaches, and other threats are all part of the threat environment for these attacks, which further necessitated the demand for cybersecurity insurance in the BFSI sector.
  • For instance, according to the data from Orange, the malware was the most frequent form of cyber attack in financial and insurance organizations between October 2021 and September 2022. The attack vector targeted over 40% of the world's organizations. Network and application anomalies came in second, with 23% of organizations reporting such cyberattacks, followed by System anomalies with 20%.
  • Cybersecurity Insurance is increasingly becoming a vital part of banking and financial institutions. The industry is expected to command a significant global market share during the forecast period. It is one of the highly regulated, governed industries and is also prone to identity frauds that augment demand, thus further proliferating the demand for the cybersecurity insurance market in the BFSI sector.
  • For instance, in October 2021, the Federal Trade Commission issued an amended rule that increases the data security precautions financial institutions must implement to secure their clients' financial data. In recent years, consumers have suffered enormous suffering due to massive data breaches and cyberattacks, including monetary loss, identity theft, and other forms of financial misery. The revised Safeguards Rule from the Federal Trade Commission requires non-banking financial firms, such as mortgage brokers, car dealers, and payday lenders, to establish, implement, and maintain a robust security system to protect their clients' information. Government policies will significantly drive the market.
  • With increased security breaches, banks and financial institutes should adopt cybersecurity insurance to safeguard their customers' data and prevent economic losses. For instance, in December 2021, a huge security breach at Bitmart, a crypto trading platform, resulted in hackers removing about USD 200 million in assets. A stolen private key was the primary source of the security compromise, which affected two of its Ethereum and Binance innovative chain hot wallets.
Cybersecurity Insurance Market: Distribution of Cyber Attacks on Financial and Insurance Organizations, in Percentage, Worldwide, October 2021-September 2022

The United States is Expected to Hold the Major Share in the North American Region

  • The United States is considered the world's most prominent cybersecurity insurance market. The country is also home to a significant number of key players operating in the market, which is another reason for the country's high share.
  • Cyberattacks in the United States are rising rapidly and have reached an all-time high, primarily owing to the rapidly increasing number of connected devices in the region. In the United States, consumers are using public clouds, and many of their mobile applications are preloaded with their personal information for the convenience of banking, shopping, communication, etc. 
  • According to the White House Council of Economic Advisers, the US economy loses approximately USD 57 billion to USD 109 billion per year to harmful cyber activity. To minimize this loss due to cyber attacks, the solutions offered by cyber security insurance providers are essential, and the demand for cyber security insurance is increasing in the region.
  • The region has been witnessing a significant number of data breaches over the years. According to the report published in 2022 by the Identity Theft Resource Center, 1,789 data breach incidents have been recorded. The high number of data breaches encourages organizations across various industries to opt for cybersecurity insurance, driving the market's growth.
  • The United States government signed the law to establish Cybersecurity and Infrastructure Security Agency (CISA) to enhance the defense against cyber attacks. It works with the federal government to provide cybersecurity tools, incident response services, and assessment capabilities to safeguard the governmental networks that support essential operations of the partner departments and agencies. As a result, it will open new avenues for the new and existing companies to invest in suitable cyber security suite designed for this industry.
Cybersecurity Insurance Market - Growth Rate by Region

Cybersecurity Insurance Industry Overview

The cybersecurity insurance market is moderately consolidated, with significant players offering superior technology and fostering growth through their existing distribution channels. These technology leaders are investing in innovations, mergers, acquisitions, and partnership activities to maintain a competitive edge in the market.

  • February 2023 - CloudCover Re collaborated with insurance brokerage Hylant Global Captive Solutions (Hylant) to launch CloudCover CyberCell, a cybersecurity 'rent-a-captive' insurance program. Available to associations, affinity groups, and large enterprises, the program allows users to finance self-insured cyber risks at a manageable cost. This reduces the potential liability of cyber attacks and facilitates more significant revenue generation for companies, as they can provide cyber insurance at a lower cost and broader coverage.
  • November 2022 - Agilicus, a cybersecurity firm, and Ridge Canada Cyber Solutions Inc.(RCCS), one of the leading managing general insurance agencies, collaborated to assist Canadian small to midsize businesses (SMBs) qualify for and obtain cybersecurity insurance.

Cybersecurity Insurance Market Leaders

  1. American International Group Inc.​

  2. Zurich Insurance Co. Ltd

  3. The Chubb Corporation​

  4. Aon PLC​

  5. Lockton Companies Inc.​

*Disclaimer: Major Players sorted in no particular order

Cybersecurity Insurance Market Concentration
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Cybersecurity Insurance Market News

  • September 2022 - The coalition, a cyber insurer with its headquarters in San Francisco, has been offering small and medium businesses solutions to manage cyber risk by integrating cybersecurity technologies, monitoring, access to digital forensics, incident response, and extensive insurance coverage in the USA. The company has increased its clientele and entered the UK market.
  • August 2022 - SolCyber, a Managed Security Service Provider, announced its partnership with Converge Insurance, LLC. This partnership would enhance coverage and improve the application process for small and mid-sized businesses, improving security posture and lowering business risk.

Cybersecurity Insurance Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Industry Guidelines and Policies

    5. 4.5 Assessment of the Impact of COVID-19 on the Market


    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Adoption of Cloud-based Services

      2. 5.1.2 Rising Data Security Breaches

    2. 5.2 Market Restraints

      1. 5.2.1 Difficulties in Implementing Cyber Insurance and High Costs


    1. 6.1 Organization Size

      1. 6.1.1 Small and Medium Enterprises (SMEs)

      2. 6.1.2 Large Enterprises

    2. 6.2 End-user Industry

      1. 6.2.1 Healthcare

      2. 6.2.2 Retail

      3. 6.2.3 BFSI

      4. 6.2.4 IT and Telecom

      5. 6.2.5 Manufacturing

      6. 6.2.6 Other End-user Industries

    3. 6.3 Geography

      1. 6.3.1 North America

        1. United States

        2. Canada

      2. 6.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Rest of Europe

      3. 6.3.3 Asia-Pacific

        1. India

        2. China

        3. Japan

        4. Singapore

        5. Rest of Asia-Pacific

      4. 6.3.4 Rest of the World


    1. 7.1 Company Profiles

      1. 7.1.1 American International Group Inc.

      2. 7.1.2 Zurich Insurance Co. Ltd

      3. 7.1.3 Aon PLC

      4. 7.1.4 Lockton Companies Inc.

      5. 7.1.5 The Chubb Corporation

      6. 7.1.6 AXA XL

      7. 7.1.7 Berkshire Hathaway Inc.

      8. 7.1.8 Insureon

      9. 7.1.9 Security Scorecard Inc.

      10. 7.1.10 Allianz Global Corporate & Specialty (AGCS)

      11. 7.1.11 Munich Re Group

    2. *List Not Exhaustive


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Cybersecurity Insurance Industry Segmentation

Cybersecurity insurance is a contract that an individual or entity can purchase to help reduce the financial risks associated with an online business. The insurance policy transfers some of the risks to the insurer in exchange for a monthly or quarterly fee. Many companies purchase cybersecurity insurance policies to cover extra expenditures that could result from the physical destruction or theft of digital assets. Such spending typically includes the cost of notifying customers that a security breach has been incurred, as well as the cost of regulatory compliance fines.

The Cybersecurity Insurance Market is segmented by Size of Organization (Small and Medium Enterprises (SMEs) and Large Enterprises), End-user Industry (Healthcare, Retail, BFSI, IT and Telecom, and Manufacturing), and Geography (North America, Europe, Asia Pacific, Rest of the World).

The market sizes and forecasts are provided in terms of value (USD Billion) for all the above segments.

Organization Size
Small and Medium Enterprises (SMEs)
Large Enterprises
End-user Industry
IT and Telecom
Other End-user Industries
North America
United States
United Kingdom
Rest of Europe
Rest of Asia-Pacific
Rest of the World
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Cybersecurity Insurance Market Research FAQs

The Cybersecurity Insurance Market size is expected to reach USD 16.09 billion in 2024 and grow at a CAGR of 19.72% to reach USD 39.58 billion by 2029.

In 2024, the Cybersecurity Insurance Market size is expected to reach USD 16.09 billion.

American International Group Inc.​, Zurich Insurance Co. Ltd, The Chubb Corporation​, Aon PLC​ and Lockton Companies Inc.​ are the major companies operating in the Cybersecurity Insurance Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Cybersecurity Insurance Market.

In 2023, the Cybersecurity Insurance Market size was estimated at USD 13.44 billion. The report covers the Cybersecurity Insurance Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cybersecurity Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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Cybersecurity Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)