According to Research and Markets' most recent prediction, the size of the global cybersecurity insurance market is anticipated to reach $32.6 billion by 2028, growing at a rate of 18.8% CAGR.
Market Size for Cybersecurity Insurance is Forecast to Reach $32.6 Billion by 2028
By 2028, solutions will create about two-thirds of that total, while services will produce the remaining third. Overall, since 2019, service providers have demanded cybersecurity insurance at a quicker rate than solution providers. The market had a $6 billion value in 2019.
The demand for identification and risk coverage is expected to lead the banks and financial institutions sector to have a significant market share over the forecast period, especially given how strictly supervised and regulated that industry is, according to the researcher.
According to Research and Markets, one of the causes that has pushed the demand for cybersecurity upward is cybercriminals' persistently strong interest in making money by selling private information on the dark web. Another is the development of cloud computing, which has altered the IT landscape and unlocked new markets but also increased the danger of cyberattacks. Because of this, some IT stakeholders and businesses are looking into updated insurance models.
Impact of COVID-19 on Market
With more scattered working settings bringing more risk connected with remote workers, the impact of COVID-19 is another force pushing the market upward. As a result, there is a greater need for cybersecurity insurance to offset financial losses from cyberattacks.
Other market variables
Risk analytics mixed with blockchain and artificial intelligence are likely to aid cybersecurity insurance businesses with some of their most serious issues.
Because businesses must notify all parties who may have been impacted by data breaches, the cost of an intrusion may increase, which would result in an increase in insurance coverage costs.
In 2021, the cybersecurity insurance market's revenue share was dominated by the North American region. The bulk of the key players in the cybersecurity insurance industry are present, which bodes well for the sector's expected strong growth.
Cyber Insurance is Driven by Partnerships
Partnerships with IT firms, MSSPs, and M&A transactions have all contributed to the expansion of cyber insurance. For instance, in August 2022 MSSP SolCyber teamed up with Converge, a new supplier of cyber insurance, in an effort to streamline the application and approval process for cyber insurance for mid-market businesses.
At the same time, Munich Re Digital Partners sold Digital Affect Insurance to cyber insurance provider Coalition. As a result, Coalition now has a 50-state-licensed property and liability insurer. Currently in 2022, MSSP Alert and sister site ChannelE2E have reported on 734 technology M&A transactions. The forensic team at Coalition Insurance Company has a history of collaborating with MSPs to assist clients in minimising data breaches.
Additionally, a cyber insurance policy for businesses' Amazon Web Services (AWS) cloud workloads was introduced in early August 2022 by cyber insurer Cowbell Cyber and international reinsurance company Swiss Re Group.
