The global cybersecurity insurance market is headed for substantial growth, according to a new report.
ResearchAndMarkets.com estimates that the market will be worth $14.4 billion in 2023, with a Compound Annual Growth Rate (CAGR) of 18.3% projected from 2023 to 2028.
This projected growth is attributed to rising cyber threats coupled with an increased need to meet data protection compliance standards.
Increasing Regulatory Scrutiny
Cybersecurity insurance has taken center stage as stricter data protection regulations, such as Europe's GDPR and California's CCPA, have come into play.
Regulations like these have put the onus of responsibility on businesses to protect sensitive data, making cybersecurity insurance essential to comply with these guidelines and offer financial safeguards against potential lapses.
Among various market participants, insurance providers are anticipated to dominate in terms of market size during the forecasted period, according to the study’s authors. With the growing intricacy of cyber risks, especially with the rise in connected devices, there's a highlighted significance for cybersecurity insurance solutions and services. Recognizing this, insurance providers are tailoring cyber policies to address organizations' unique needs in the face of these threats, the authors said.
Asia Pacific is expected to experience notable growth, driven by heightened security concerns and rapid technological advancements. Countries including China, Japan, Australia, New Zealand, and Singapore offer promising expansion opportunities, the report suggested. With increasing digital connectivity in these regions, the imperative nature of cybersecurity insurance becomes even more apparent.
Prominent Players
Prominent technology providers in the cybersecurity insurance market encompass companies like Bitsight, Prevalent, Redseal, and Microsoft among others. On the insurance side, key players include Chubb, Axa Xl, Aig, and Allianz. These entities have leveraged various strategies, such as partnerships, acquisitions, and product advancements, to adapt to the shifting industry needs.
The market dynamics in the cybersecurity insurance sector are largely influenced by factors like regulatory mandates concerning cybersecurity, financial loss recuperation, and the growing complexity of cyber threats. Case studies presented in the report underline the tangible benefits of cybersecurity insurance solutions in practical settings.
In light of consistent cyber threats and ever-evolving regulations, the future of the cybersecurity insurance market looks promising, according to the report. As global organizations confront data protection challenges and compliance necessities, the importance of cybersecurity insurance in risk mitigation and financial safeguarding will likely rise, the authors said.
