In 2023, the largest provider of cyber security insurance in the United States was Chubb Ltd. The Swiss property and casualty insurer wrote a total of 573.6 million U.S. dollars in cyber security premiums in 2023. Cyber security insurance Cyber security insurance protects policy holders against risks associated with IT infrastructure and activities. The main causes of IT risks are physical loss or damage (for example from natural disasters), misuse by employees, and unauthorized access by third parties (generally through the internet). Each of these problems can generate costs from business interruption, replacement of IT infrastructure, and/or payment of compensation to victims. Computer crimes such as hacking, malware and viruses were the greatest source of cyber-security losses in the United States from 2013 to 2019, accounting for nearly half of all claims made. The global cyber security insurance market This market emerged in recent years and its development is a consequence of increasing reliance on digital solutions for data storage. It is predicted that the global cyber insurance market will exceed 22 billion U.S. dollars by 2025. The cost of a data breach varies by industry. For instance, a data breach in the healthcare sector cost twice as much as a data breach in the technology sector in 2023.

According to Cognitive Market Research, the global Cyber Insurance market size is USD 14151.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 26.50% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 5660.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.7% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 4245.36 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 3254.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 28.5% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 707.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.9% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 283.02 million in 2024 and will grow at a compound annual growth rate (CAGR) of 26.2% from 2024 to 2031.
The Solution held the highest Cyber Insurance market revenue share in 2024.

Driving Factor for the Cyber Insurance Market

Escalating Cyber Threats to Increase the Demand Globally

Businesses face severe challenges due to the persistent increase in cyber threats, characterized by increased assault frequency and sophistication. This can lead to significant financial losses and damage to a company's brand. As a result, cyber insurance is in high demand as a critical risk reduction tactic. Financial protection against cyber-related incidents, such as ransomware attacks, data breaches, and other malicious activities, is provided by this specific insurance coverage. Cyber insurance is a vital safety net for organizations as they work to strengthen their cybersecurity procedures. It offers financial support and redress in the event of a cyber incident, helping to protect them against the constantly changing world of digital hazards.

Increasing Regulation to Propel Market Growth

Governments worldwide are putting greater restrictions on data protection and breach notification laws, forcing companies to follow stricter compliance guidelines. Cyber insurance is a vital instrument in this regulatory environment, helping businesses comply with mandates and reduce legal risk. Companies that purchase cyber insurance protect themselves from monetary losses resulting from data breaches and guarantee regulatory compliance. By being proactive, you can reduce the likelihood of legal issues and the possible consequences of non-compliance. Cyber insurance plays a crucial role in an organization's risk management strategy as regulatory frameworks develop and become more stringent. It offers crucial protection and comfort in an increasingly regulated digital world.

Market Restraint for the Cyber Insurance Market

Data Privacy Concerns to Limit the Sales

Companies thinking about purchasing cyber insurance have serious concerns about data privacy. Giving insurance companies access to confidential data raises justifiable concerns about possible breaches and misuse. Strong cybersecurity measures, such as encryption, access controls, and frequent audits, are essential for insurers to prioritize to alleviate these worries and protect the data they manage. Furthermore, assuaging concerns can be aided by open and honest communication on data management procedures and rigorous respect for privacy regulations. When choosing insurance partners, businesses should also perform extensive due research to make sure the partners have a strong data protection track record. Ultimately, overcoming resistance and persuading companies to accept cyber insurance as an essential risk management tool requires building confidence through open practices and strict security procedures.

Impact of COVID-19 on the Cyber Insurance Market

The COVID-19 pandemic has had a major effect on the cyber insurance market, driving up demand because firms are now more vulnerable to cyber threats due to remote employment and digital dependence. The necessity for financial security against possible breaches and interruptions has increased due to the sophistication and pervasiveness of cyber threats brought about by rapid digitization. However, in response to the growing frequency and severity of cyber disasters...

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Cyber Insurance Market Size 2025-2029

The cyber insurance market size is forecast to increase by USD 13.29 billion at a CAGR of 23.2% between 2024 and 2029.

The market is experiencing significant growth driven by the increasing adoption of technology and the resulting heightened risk of cyber attacks. According to recent estimates, the global cybercrime damages are projected to reach USD6 trillion annually by 2021, underscoring the urgent need for cybersecurity measures and insurance coverage. This trend is particularly prominent in regions with advanced digital economies, such as North America and Europe. However, the market's growth trajectory is not without challenges. One of the most pressing issues is the lack of standardization in cyber insurance policies, which can make it difficult for businesses to compare offerings and choose the most appropriate coverage. Additionally, the rapidly evolving threat landscape and the increasing sophistication of cybercriminals necessitate continuous innovation and adaptation from insurers to stay competitive. Companies seeking to capitalize on market opportunities and navigate these challenges effectively should prioritize building strong partnerships with technology providers, investing in advanced threat intelligence and analytics, and offering flexible and customizable policies that cater to the unique needs of their clients. By staying agile and responsive to market demands, cyber insurance providers can differentiate themselves and seize the significant growth potential in this dynamic market.

What will be the Size of the Cyber Insurance Market during the forecast period?

Request Free SampleThe market continues to experience significant growth as businesses increasingly recognize the need to mitigate risks associated with cyber threats. According to recent industry reports, The market is projected to reach substantial size by 2026, driven by the increasing adoption of cloud computing, Internet of Things (IoT), and remote working. Cyber criminals continue to target organizations through various means, including data breaches, internet-based attacks, and IoT malware. Consequently, there is a growing demand for cyber insurance policies that provide coverage against financial losses resulting from these threats. Large enterprises are leading the charge in purchasing cyber insurance, recognizing the potential financial and reputational damage that can result from a cyber attack. IT infrastructure and information policies are critical components of cybersecurity, and cyber insurance can help organizations manage risks in these areas. Virtual private networks (VPNs) and other security measures are also important considerations for businesses seeking to protect their digital assets. Cybersecurity ventures and technology companies, such as SonicWall Cyber Threat Intelligence and SonicWall Capture Labs, play a crucial role in identifying and mitigating cyber threats. Information governance and cybersecurity best practices are essential for businesses to effectively manage their cyber risk and reduce the likelihood of a breach. Overall, the market is expected to remain a dynamic and evolving sector as businesses continue to grapple with the complexities of cybersecurity in an increasingly interconnected world.

How is this Cyber Insurance Industry segmented?

The cyber insurance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeLarge enterprisesSmall and medium-sized enterprisesSolutionStandalonePackagedGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth AmericaBrazilMiddle East and Africa

By Type Insights

The large enterprises segment is estimated to witness significant growth during the forecast period.Large enterprises are increasingly vulnerable to cyber threats due to their size, complex IT infrastructure, and valuable data. Cyber insurance has emerged as a crucial risk management tool for these organizations, providing financial protection against data breaches, ransomware attacks, phishing scams, and other cyber incidents. According to Munich Re experts, The market is expected to reach USD20.4 billion by 2027, driven by the growing number of cyber threats and the increasing awareness of the need for risk mitigation. Cyber criminals continue to target large enterprises, exploiting vulnerabilities in cloud computing, Internet of Things (IoT), and Operational Technology (OT) systems. In 2023, SonicWall Cyber Threat Report identified over 10 million IoT malware attacks and 1.5 billion phishing attacks. Cyber ILS, a cyber catastrophe bond, and crypto insurance services have gained popularity as additional layers of protection against cyber risks. Large enterprises are investing in AI-

Between March 2022 and February 2024, the highest average cost of a data breach, nearly 9.77million U.S. dollars, was detected in the healthcare industry. The financial sector ranked second, with 6.08 million U.S. dollars on average per breach. The global average data breach cost in the measured period was 4.88 million U.S. dollars. Data breaches in the public sector cost relatively low, an average of 2.55 million U.S. dollars during the measured period.

The global cyber insurance market is experiencing explosive growth, with a market size of $15,394.86 million in 2025 and a Compound Annual Growth Rate (CAGR) of 42.36% projected from 2025 to 2033. This surge is driven by the escalating frequency and severity of cyberattacks targeting businesses of all sizes, coupled with increasingly stringent data privacy regulations and rising awareness of cybersecurity risks. The market's segmentation reveals a strong demand across both large enterprises and small and medium-sized enterprises (SMEs), with packaged solutions gaining traction over standalone offerings due to their comprehensive coverage. Geographically, North America currently holds a significant market share, followed by Europe and the Asia-Pacific region, reflecting the high concentration of technology companies and sophisticated cyber threats in these areas. However, developing economies in APAC and other regions are showing rapid adoption rates, fueled by growing digitalization and government initiatives promoting cybersecurity. The market's competitive landscape is robust, with established insurance companies, specialized cyber insurers, and technology providers vying for market share. Key competitive strategies include developing innovative product offerings, enhancing risk assessment capabilities, and expanding partnerships to offer comprehensive cybersecurity solutions. The substantial growth potential is further fueled by factors like the increasing reliance on cloud computing and the Internet of Things (IoT), both expanding the attack surface for cybercriminals. While the market faces constraints such as the difficulty in accurately assessing cyber risks and the complexity of developing appropriate insurance policies, the overall outlook remains highly positive. The continuing evolution of cyber threats and the rising cost of data breaches will likely drive sustained demand for cyber insurance, leading to further market expansion in the coming years. Companies are prioritizing cyber insurance as a crucial element of their risk mitigation strategies, resulting in a market projected to exceed significantly beyond the 2033 forecast based on the current trajectory. Successful players will be those who can effectively navigate the evolving threat landscape, offer tailored solutions, and build strong relationships with their clients.

Global Cybersecurity Insurance Market size was valued at USD 12.30 billion in 2022 poised to grow from USD 15.41 billion in 2023 to USD 93.64 billion by 2031, growing at a CAGR of 19.3% in the forecast period (2024-2031).

In 2018, cyber insurance premiums worldwide amounted to 5.2 billion U.S. dollars, and are expected to increase to 7.5 billion U.S. dollars in 2020.

Cyber insurance

Cyber insurance protects individuals and businesses from online breaches from hackers. Cyber security is one of the biggest risks for businesses. As technology has developed over the years, there has been an increase in cyber security related incidents. Technology and social media play vital roles in how businesses conduct their work and attract customers. However, cyberattacks can affect both sides of the transaction. Cyber insurance is intended to cover expenses that first parties file for as well as third party claims. Additionally, it also covers the legal costs when a cyberattack happens so an investigation can take place. Furthermore, it covers the lost income that businesses suffer when a business cannot continue to run their business for a period of time.

Cyber insurance market

In 2016, the United States was the region where the most cyber insurance premiums were written. The largest insurance company in the United States in 2017 was Chubb Ltd., based on the value of direct cyber security premiums written. It is expected that the market size of cyber insurance premiums written worldwide will quintuple from 2018 to 2025.

The Cybersecurity Insurance Market is projected to grow at 24.0% CAGR, reaching $51.19 Billion by 2029. Where is the industry heading next? Get the sample report now!

The size of the Finland Cyber (Liability) Insurance Market market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 2.00% during the forecast period. The cyber (liability) insurance market is a rapidly evolving sector within the broader insurance industry, designed to protect businesses and organizations from financial losses resulting from cyberattacks, data breaches, and other digital threats. As reliance on technology and digital platforms grows, so does the risk of cyber incidents, leading to an increasing demand for specialized insurance coverage. Cyber liability insurance typically covers a range of incidents, including data breaches, identity theft, ransomware attacks, and business interruption caused by cyber incidents. These policies often provide coverage for various expenses, such as legal fees, notification costs for affected customers, public relations efforts to manage reputation damage, and regulatory fines. Additionally, many cyber liability policies include coverage for business income loss during recovery periods, which can be critical for maintaining operations following an attack. Key drivers for this market are: Embedded Insurance is Driving the Market. Potential restraints include: Inflation is Restraining the Property and Casualty Insurance Market of Singapore. Notable trends are: Finland Offers Expertise in Cybersecurity Software, Hardware, Digital Services and Partnerships.

In 2023, manufacturing saw the highest share of cyberattacks among the leading industries worldwide. During the examined year, manufacturing companies encountered nearly a quarter of the total cyberattacks. Finance and insurance organizations followed, with around 18 percent. Professional, business, and consumer services ranked third, with 15.4 percent of reported cyberattacks. Healthcare industry and cyberattacks
The healthcare industry is considered one of the most vulnerable sectors to cybercrime. Between October 2021 and September 2022, healthcare organizations worldwide saw various cyberattacks, mostly network and application, as well as malware. Additionally, this sector had the highest average data breach cost throughout recent years, amounting to nearly 11 million U.S. dollars. IT perspective and prevention
With recent technology developments, cybersecurity is crucial to an organization’s success. Realizing this, companies have been gradually increasing cybersecurity investments. Thus, in 2024, the cybersecurity budget worldwide was forecast to increase to nearly 283 billion U.S. dollars. Roughly nine in ten board directors of companies worldwide in professional services and media and entertainment industries say they expect an increase in the cybersecurity budget.

The size of the Norway Cyber (Liability) Insurance Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 1.00% during the forecast period. The Norway cyber liability insurance market provides protection to businesses and individuals against risks related to cyberattacks, data breaches, and other digital threats. As Norway’s economy becomes increasingly digitalized, companies face growing vulnerabilities from cyber incidents, including hacking, ransomware, and data leaks. Cyber liability insurance helps mitigate these risks by covering costs associated with legal fees, data recovery, notification to affected customers, and business interruption caused by cyber events. The insurance also covers liabilities arising from privacy violations or failures in data protection, which are critical due to stringent data protection regulations like the EU’s General Data Protection Regulation (GDPR). In recent years, the demand for cyber liability insurance in Norway has surged as businesses across various sectors, from finance to healthcare, recognize the increasing threat of cybercrime. The rise in remote working and the adoption of cloud technologies have further heightened the risk landscape. Norwegian businesses are particularly concerned about operational disruptions and the reputational damage that can result from cyber incidents. Insurers in Norway are responding to this growing demand by offering tailored cyber insurance policies that address the unique needs of different industries, including specific coverages for ransomware attacks, phishing schemes, and supply chain vulnerabilities. Recent developments include: December 2020, Aon plc, a leading global professional services firm providing a broad range of risk, retirement, and health solutions, today announced the launch of a digital insurance solution for small and middle-market businesses. With this new offering, businesses across a wide spectrum of industries can go through the full end-to-end process of buying and managing cyber and professional liability insurance online. They also have access to an insurance specialist to walk through the application process and coverage details., March 2019, Marsh, a global leader in insurance broking and innovative risk management solutions, today announced the launch of Cyber Catalyst, a new way to assist organizations in making more informed choices about cybersecurity products and services to manage cyber risk. The Cyber Catalyst program brings together leading cyber insurers to identify and evaluate solutions they consider effective in reducing cyber risk, giving organizations greater clarity in an increasingly complex cybersecurity marketplace.. Key drivers for this market are: Rise of Digital Payments, Rising Investments in FinTech Firms. Potential restraints include: Intense Competition, Increasing Cybersecurity Risks. Notable trends are: The General Data Protection Regulation (GDPR).

The office insurance market is experiencing robust growth, driven by increasing awareness of business risks and the rising adoption of remote work models. The market, estimated at $15 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching an estimated value of $26 billion by 2033. This growth is fueled by several key factors, including the expansion of small and medium-sized enterprises (SMEs), a greater need for liability coverage, and evolving technological risks such as cyber threats and data breaches. The market is segmented by insurance type (Item Insurance, Employee Insurance, Others) and application (Law, Accounting, Medical, Others), allowing for targeted insurance solutions catering to specific business needs. Key players like SME Insurance, Premierline, Gocompare, and Hiscox are actively shaping the market landscape through competitive offerings and innovative insurance solutions. The market is geographically diverse, with significant contributions from North America, Europe, and Asia Pacific regions, reflecting global business activity and varying regulatory environments. Growth is anticipated to be particularly strong in developing economies experiencing rapid urbanization and business expansion. The increasing prevalence of remote work necessitates comprehensive insurance coverage addressing new liabilities and operational risks, boosting demand for flexible and adaptable office insurance policies. The rising awareness of cybersecurity risks among businesses is also driving market growth as companies seek protection against data breaches and other cyber-related threats. Government regulations regarding workplace safety and environmental protection contribute to the demand for compliance-related insurance coverage. However, factors such as economic downturns and intense competition among insurance providers can restrain market growth. The increasing adoption of technology in the insurance sector presents an opportunity to enhance efficiency and customer experience, though it also requires substantial investment in infrastructure and skilled personnel. Future growth is expected to be further fueled by innovations in risk assessment and insurance product design, alongside an increasing awareness of the long-term financial implications of inadequate risk management for businesses of all sizes.

The size of the Cyber Security Insurance in UK Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 8.00% during the forecast period. Cyber security insurance in the UK market refers to specialized insurance products designed to protect businesses from the financial repercussions of cyberattacks and data breaches. As digital transformation accelerates and cyber threats become increasingly sophisticated, organizations are recognizing the importance of safeguarding their assets and data. Cyber security insurance provides coverage for a range of risks, including data loss, business interruption, cyber extortion, and liability for third-party claims arising from data breaches. The UK cyber insurance market has witnessed significant growth, driven by rising awareness of cyber risks among businesses and the increasing regulatory requirements for data protection, such as the General Data Protection Regulation (GDPR). Insurers offer tailored policies that typically include coverage for incident response costs, legal expenses, regulatory fines, and public relations efforts to mitigate reputational damage after a cyber incident. Moreover, many insurers provide risk management services, helping organizations identify vulnerabilities and implement best practices to enhance their cyber resilience. Recent developments include: September 2023: Cowbell is committed to addressing cyber risk challenges on a global scale, and our expansion into the UK is a testament to this. Cowbell Prime One is tailored towards SME and mid-market customers and allows brokers to customize cyber policies for different risk exposures, such as email scams, ransomware, and social engineering., March 2023: Cyber insurance provider Coalition is set to enter the excess cyber insurance market in the United Kingdom to help protect businesses with enhanced coverage. The firm has confirmed that it will extend its reach to provide full-follow form coverage and protection of up to GBP 10 million (USD 12126000) above a primary layer of insurance from another insurer for both cyber and technology professional indemnity (PI) lines.. Key drivers for this market are: Data Privacy Regulations, Business Interruption. Potential restraints include: Complexity and Lack of Understanding, Cost of Coverage. Notable trends are: Impact of Cyber Insurance Policy Coverage.

The value of stand-alone cyber insurance premiums stood at nearly five billion U.S. dollars in 2023. This segment experienced rapid growth in 2022 when premiums amounted to 5.1 billion U.S. dollars, up from 3.1 billion U.S. dollars in the previous year. The average cost of a data breach varies across industries, though the healthcare and financial sectors have suffered the most expensive data breaches on average.

In 2023, the number of data compromises in the United States stood at 3,205 cases. Meanwhile, over 353 million individuals were affected in the same year by data compromises, including data breaches, leakage, and exposure. While these are three different events, they have one thing in common. As a result of all three incidents, the sensitive data is accessed by an unauthorized threat actor. Industries most vulnerable to data breaches Some industry sectors usually see more significant cases of private data violations than others. This is determined by the type and volume of the personal information organizations of these sectors store. In 2022, healthcare, financial services, and manufacturing were the three industry sectors that recorded most data breaches. The number of healthcare data breaches in the United States has gradually increased within the past few years. In the financial sector, data compromises increased almost twice between 2020 and 2022, while manufacturing saw an increase of more than three times in data compromise incidents. Largest data exposures worldwide In 2020, an adult streaming website, CAM4, experienced a leakage of nearly 11 billion records. This, by far, is the most extensive reported data leakage. This case, though, is unique because cyber security researchers found the vulnerability before the cyber criminals. The second-largest data breach is the Yahoo data breach, dating back to 2013. The company first reported about one billion exposed records, then later, in 2017, came up with an updated number of leaked records, which was three billion. In March 2018, the third biggest data breach happened, involving India’s national identification database Aadhaar. As a result of this incident, over 1.1 billion records were exposed.

The Cyber Security Insurance market has emerged as a vital component in the ever-evolving landscape of digital risk management, providing essential financial protection against cyber threats and data breaches. As businesses increasingly depend on technology to drive their operations, the demand for cyber insurance h

In 2023, there were 3,348 reported cyber incidents in the financial industry worldwide, up from 1,829 in the preceding year. Coherently, the number of data breaches increased within the last two examined years, going from 690 in 2021 to 1,115 in 2023. Overall, 2023 saw the most significant number of cyber incidents since 2013.

The size of the Cyber Security Insurance Market in Singapore market was valued at USD 108.04 Million in 2023 and is projected to reach USD 208.54 Million by 2032, with an expected CAGR of 9.85% during the forecast period. The market is driven by rising cybercrime incidents, increasing awareness of cyber risks, and government initiatives to promote cyber security. Hybrid seeds offer numerous benefits, including increased yield, better resistance to pests and diseases, and improved adaptability to changing climate conditions. Government initiatives, rising food security concerns, and technological advancements are also contributing to the growth of the hybrid seed market. Major players involved in the development and distribution of hybrid seeds include Syngenta, Bayer, and Dupont Pioneer. Recent developments include: April 2023: Asian insurance company FWD Singapore announced the expansion of its home insurance coverage by protecting homeowners from cyber fraud through its complimentary FWD cyber insurance. FWD Cyber insurance provides coverage for some of the most common scams, up to USD 3739.50 in coverage for financial loss arising directly from an online marketplace fraud, and up to USD 3739.50 in coverage for financial loss to customers' bank accounts or digital wallets arising directly from a cyber event., March 2022: Chubb acquired renewal rights of DUAL Asia's Financial Lines portfolios in Hong Kong SAR and Singapore. Chubb purchased the business assets, including the intellectual property and underwriting models. The parties took over DUAL's client portfolio renewal rights, effective from 18 June 2022.. Key drivers for this market are: Embedded Insurance is Driving the Market. Potential restraints include: Inflation is Restraining the Property and Casualty Insurance Market of Singapore. Notable trends are: Data Breaches and Loss of Confidential Information is Driving the Market.

As of 2024, the average cost of a data breach in the United States amounted to 9.36 million U.S. dollars, down from 9.48 million U.S. dollars in the previous year. The global average cost per data breach was 4.88 million U.S. dollars in 2024. Cost of a data breach in different countries worldwide Data breaches impose a big threat for organizations globally. The monetary damage caused by data breaches has increased in many markets in the past decade. In 2023, Canada followed the U.S. by data breach costs, with an average of 5.13 million U.S. dollars. Since 2019, the average monetary damage caused by loss of sensitive information in Canada has increased notably. In the United Kingdom, the average cost of a data breach in 2024 amounted to around 4.53 million U.S. dollars, while in Germany it stood at 5.31 million U.S. dollars. The cost of data breach by industry and segment Data breach costs vary depending on the industry and segment. For the fourth consecutive year, the global healthcare sector registered the highest costs of data breach, which in 2024 amounted to about nine million U.S. dollars. Financial institutions ranked second, with an average cost of six million U.S. dollars for a data breach. Detection and escalation was the costliest segment in data breaches worldwide, with 1.63 U.S. dollars on average. The cost for lost business ranked second, while response following a breach came across as the third-costliest segment.