Research Nester published a new report titled “Cyber Security Insurance Market: Global Demand Analysis & Opportunity Outlook 2027” delivers detailed overview of the global cyber security insurance market in terms of market segmentation by company revenue, by industry vertical and by region.
Further, for the in-depth analysis, the report encompasses the industry growth drivers, restraints, supply and demand risk, market attractiveness, BPS analysis and Porter’s five force model.
Cyber risk is a bridge between tangible and intangible assets, which leaves the organizations exposed to a wide scale of damage. Cyber insurance was historically focused on digital assets, such as client’s personal data or transactional data.
Cyber security risk is not just solely a digital risk, it covers the physical world of tangible assets as well, for instance, hacking into a fire protection sprinkler system could lead to flooding and damage to physical property. An integrated understanding of cyber risk is critical to fully address the range of threats that can arise out of it. The rise in cyber-attacks apart from its wide usage has led to think for other lines such as personal (reputation), property (physical damage), and intellectual property (competitor information). Owing to these factors, the global cyber security insurance market is anticipated to record a CAGR of 30% over the forecast period i.e. 2019-2027.
Furthermore, cases of unauthorized stealing or accessing sensitive business data, such as intellectual properties, employees' personal information or even financial records has been rising which in turn, is driving the cyber security insurance market.
The market is segmented by company revenue (very small companies ($2.5 million to $99 million), small companies ($100 million to $299 million), medium sized companies ($300 Million to $1 Billion) and large companies ($1.1 Billion and above), out of which, the large companies pay larger premium for cyber liability policies, as they need to pay high cost to recover losses. Based on industry vertical the cyber insurance market can be bifurcated into healthcare, retail, banking and financial services, information technology and others.
While cyber insurance was initially purchased by Technology, Media and Telecom (TMT) companies and professional services firms, in recent years of demand has been predominately driven by large corporations storing personally identifiable information and processing vast amount of financial transactions, i.e. large retailers, heavily regulated financial institutions.
Increased Adoption of Cloud Based Solutions
Cloud computing is one of the recent technologies that is being adopted on a large scale to reduce the conventional boundaries of IT. The growing demand for cyber insurance coverage are in sectors beyond banking or financial institutions and healthcare facilities, such as professional services. Companies of different sizes and verticals are now purchasing cyber insurance policies, owing to mandatory legal developments.
Development of Cyber Insurance Linked Securities (ILS) Market and Cyber Risk Pools
Insurance professionals are looking for innovative ways to expand the availability of cyber insurance and creative ways to enter the market. Cyber pools can potentially offer a facility for providing cyber insurance to corporate buyers and the use of capital markets funding, to back the risk, can allow for larger policy limits for specific use-cases.
This report also provides the existing competitive scenario of some of the key players of the cyber security insurance market which includes company profiling of Aon Plc, Berkshire Hathaway Group, AIG (American International Group), Inc., Zurich Insurance Group, Allianz Global Corporate & Specialty, Lockton Companies LLP, Munich Re Group, Chubb, Beazley Group and AXA XL.
The profiling enfolds key information of the companies which encompasses business overview, products and services, key financials and recent news and developments. On the whole, the report depicts detailed overview of the cyber security insurance market that will help industry consultants, equipment manufacturers, existing players searching for expansion opportunities, new players searching possibilities and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.