Cyber Security Insurance Market is Anticipated to Witness High Growth Owing to Increasing Cybersecurity Breaches
Cyber Security Insurance Market |
The cyber security insurance market comprises insurance policies that provide risk transfer solutions against potential cyber threats such as data breach, network damage, and cyber liability. Cybersecurity insurance helps indemnify expenses related to cyber-attacks such as notifying customers regarding breached data, credit monitoring charges, forensic investigation costs, crisis communication expenses, theft/fraud losses, and legal penalties from regulatory agencies. Growing adoption of internet of things (IoT) devices and rising trend of digital transformation across industry verticals have increased dependence on online infrastructure and web applications, making businesses more vulnerable to cyber-attacks. Furthermore, stringent regulations such as the General Data Protection Regulation (GDPR) have compelled organizations to safeguard customer data, boosting demand for cybersecurity insurance.
The global cyber security insurance
market is estimated to be valued at US$ 15.7 Mn in 2024 and is expected to
exhibit a CAGR of 7.8% over the forecast period from 2024 to 2030.
Key Takeaways
Key players operating in the cyber security insurance market are Advacare
Pharma, UEBE Medical, Abbott Laboratories, Quidel Corporation, HiLin Life
Products Inc., Geratherm Medical AG, Fertility Focus Limited, Fairhaven Health
LLC, Church & Dwight Co. Inc., and Prestige Brands Holdings Inc., among
others. Advacare Pharma is a leading player known for providing innovative
cyber risk solutions
Key Opportunities
Increasing instances of sophisticated cyber-attacks on critical infrastructure
as well as healthcare organizations are expected to present lucrative
opportunities for stakeholders. Furthermore, rapid digital transformation of
SMEs will spur demand for cost-effective cyber insurance policies tailored to
their requirements.
Global Expansion
Key cyber insurers are investing in technologies such as AI and IoT to better
detect cyber threats upfront and expand globally. For instance, in 2022,
Advacare Pharma launched its cyber insurance solution in the Asia Pacific to
gain a larger share in the fast-growing regional market.
Market Drivers
One of the primary drivers for Global
Cyber Security Insurance Market Size is increasing instances of
cybercrime globally. The annual cost of cybercrime is projected to surpass US$
10.5 trillion globally by 2025. As cyber-attacks continue to amplify in
frequency and scale, organizations across all industry verticals are
recognizing the need for cyber risk transfer solutions.
Market Restrains
High premium costs of cyber insurance policies pose a major challenge,
especially for SMEs with limited security budgets. Furthermore, the lack of
standardized policy structures and coverage ambiguities create reluctance among
some businesses. Insurers also face difficulties in accurately estimating the
magnitude of cyber risks and associated expenses.
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