According to a recent analysis from research and consulting firm MarketsandMarkets, the cybersecurity insurance market is expected to develop significantly in the coming years.
The market is estimated to rise from $10.3 billion in 2023 to $17.6 billion by 2028, reflecting a 11.4% CAGR over the forecast period.
The increasing frequency and range of cyber threats, such as data breaches, ransomware attacks, and phishing efforts, have encouraged enterprises to seek financial protection against potential losses.
Individual policies taking the lead
According to the survey, standalone cybersecurity insurance policies are driving industry growth. These customized policies, which provide tailored coverage for only cyber hazards, are gaining traction over bundled cybersecurity insurance products. Organizations are becoming more aware of the importance of comprehensive coverage that tackles the intricacies of cyber dangers.
According to the survey, key market participants offering standalone cybersecurity insurance solutions include AXA XL, AIG, Travelers Insurance, Beazley, Zurich, Fairfax, Tokio Marine, Liberty Mutual, and CNA.
Demand is being driven by healthcare and life sciences.
According to the report, the healthcare and life sciences sector is expected to have the greatest CAGR in the cybersecurity insurance market throughout the forecast period. Because of legal changes and the growing landscape of cyberattacks and breaches, this industry faces particular problems.
Compliance with privacy and data security rules such as HIPAA and HITECH has made cybersecurity insurance plans critical for healthcare firms in order to avoid penalties. The COVID-19 pandemic has increased cyber threats, with healthcare providers seeing an increase in attacks such as ransomware and misinformation campaigns. Cybersecurity insurance is critical in the healthcare industry for providing financial protection against cybercrimes, data breaches, and other cybersecurity catastrophes.
The Asia-Pacific region emerges as a prospective market.
According to the report, Asia-Pacific is predicted to have the greatest CAGR in the cybersecurity insurance market over the forecast period.
Countries such as China, Japan, Australia, New Zealand, and Singapore are spending heavily in cybersecurity to counteract rising cyber threats. Asia-Pacific offers considerable potential opportunities for the market due to strong government restrictions and technological improvements. When compared to other regions, the region faces a larger risk of cyberattacks, with unsecured interfaces, data breaches, and data losses being the top cybersecurity issues. The introduction of strict regulatory measures is projected to stimulate Asia-Pacific demand for cybersecurity insurance.