The cybersecurity insurance market is expected to expand significantly, rising from USD 10.3 billion in 2023 to USD 17.6 billion by 2028, reflecting a compound annual growth rate (CAGR) of 11.4% during this period. One of the key challenges facing organizations is the shortage of skilled cybersecurity professionals, which hampers their ability to effectively mitigate cyber threats. Cyber insurance plays a critical role in bridging this gap by providing access to specialized expertise and resources that aid in responding to and recovering from cyber incidents.
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Based on insurance type, the standalone segment holds the largest market and highest CAGR during the forecast period.
The demand for dedicated cybersecurity insurance policies and the need to mitigate the risks associated with “silent cyber” have led to the increasing popularity of standalone cybersecurity insurance policies. These standalone policies are projected to surpass packaged cybersecurity insurance policies regarding market growth. Organizations are increasingly concerned about cyber risks and seek specialized coverage solely for cyber risk protection, driving the demand for standalone cyber policies. Insurance providers such as AIG, Lloyd’s, and Allianz are embracing affirmative cyber and witnessing the growth of standalone policies. These policies are designed to address more complex cyber risks compared to packaged cybersecurity insurance. For example, AIG offers its clients a comprehensive cybersecurity insurance package that includes traditional property and casualty policies and a standalone CyberEdge policy. The CyberEdge policy provides policyholders with a broader range of security protection than the packaged endorsement. Key players in the market offering standalone cybersecurity insurance solutions include AXA XL, AIG, Travelers Insurance, Beazley, Zurich, Fairfax, Tokio Marine, Liberty Mutual, and CNA.
Based on insurance provider end users, healthcare & life sciences is projected to register the highest CAGR during the forecast period.
The healthcare industry faces various challenges, including regulatory fluctuations and the ever-evolving landscape of cyberattacks and breaches. Compliance with privacy and data security regulations such as HIPAA and HITECH necessitate the reliance of healthcare organizations on cybersecurity insurance policies to cover penalty fees. The COVID-19 pandemic has exacerbated cyber threats, with healthcare organizations experiencing increased attacks like ransomware and misinformation campaigns. Cybersecurity insurance is a crucial safeguard for healthcare providers, offering financial protection against cybercrimes, ransomware, data breaches, and other cybersecurity incidents.
Based on region, Asia Pacific is projected to register the highest CAGR during the forecast period.
Asia Pacific, an emerging economy, is projected to achieve the highest CAGR in the cybersecurity insurance market during the forecast period. Countries in the Asia Pacific region, such as China, Japan, ANZ, and Singapore, are highly concerned about rising security spending due to increasing cyber threats. With its strong government regulations and technological advancements, Asia Pacific presents promising growth opportunities for the cybersecurity insurance market. Insecure interfaces, data breaches, and data losses are top cybersecurity risks in the region, fueled by rapid connectivity and digital transformation. Asia Pacific faces an 80% higher risk of cyberattacks than other regions. Increasing regulatory measures are expected to drive the demand for cybersecurity insurance. Zurich Insurance predicts significant market growth in APAC, with leading players like AIG, Allianz, Chubb, and Zurich operating in the region.
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Unique Features in the Cybersecurity Insurance Market
Unlike traditional insurance, cybersecurity insurance involves highly customized risk assessments. Insurers evaluate a company’s specific IT infrastructure, data sensitivity, security protocols, and history of cyber incidents before underwriting a policy. This personalized approach ensures that coverage aligns closely with an organization’s actual risk exposure.
Cyber insurance policies often go beyond covering just direct financial losses. They may include support for public relations efforts, legal consultation, regulatory fines (where permissible), and customer notification services. This broader scope reflects the multifaceted impact of cyber incidents on reputation, compliance, and customer trust.
Many policies offer value-added services such as 24/7 incident response teams, forensic analysis, and post-breach recovery consulting. These resources are critical for organizations lacking in-house expertise, providing them with immediate access to seasoned professionals during and after an incident.
The cyber threat landscape evolves rapidly, and so do cyber insurance products. Insurers continuously update their offerings to reflect emerging threats like ransomware-as-a-service, supply chain attacks, and zero-day vulnerabilities. This dynamic nature requires insurers and insured parties to maintain a collaborative, adaptive approach.
Major Highlights of the Cybersecurity Insurance Market
A broad range of industries—including healthcare, finance, retail, and manufacturing—are adopting cybersecurity insurance to safeguard against data breaches, ransomware, and other cyber threats. The rise in digitization and reliance on cloud services has made cyber risk a universal concern.
The surge in high-profile ransomware attacks and large-scale data breaches has heightened awareness about the need for financial protection and risk transfer. This trend is pushing more organizations, including small and medium-sized enterprises (SMEs), to seek cyber insurance coverage.
Governments and regulatory bodies are implementing stricter data protection laws and cybersecurity regulations. These developments are increasing corporate liability and making cyber insurance not just a safety net but also a compliance tool for navigating complex legal environments.
The global shortage of skilled cybersecurity professionals is a major challenge for organizations. Cyber insurance policies often help fill this gap by providing access to external cybersecurity experts, incident response teams, and legal support during a cyber event.
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Top Companies in the Cybersecurity Insurance Market
The major vendors covered in the cybersecurity insurance market include BitSight (US), Prevalent (US), RedSeal (US), SecurityScorecard (US), Cyber Indemnity Solutions (Australia), Cisco (US), UpGuard (US), Microsoft (US), Check Point (US), AttackIQ (US), SentinelOne (US), Broadcom (US), Accenture (Ireland), Cylance (US), Trellix (US), CyberArk (US), CYE (Israel), SecurIT360 (US), and Founder Shield (US). The insurance vendors covered in the cybersecurity insurance market are Allianz (Germany), AIG (US), Aon (UK), Arthur J. Gallagher & Co (US), Travelers Insurance (US), AXA XL (US), AXIS Capital (Bermuda), Beazley (UK), Chubb (Switzerland), CNA Financial (US), Fairfax Financial (Canada), Liberty Mutual (US), Lloyd’s of London (UK), Lockton (US), Munich Re Group (Germany), and Sompo International (Bermuda). The startup vendors covered in the cybersecurity insurance market are At-Bay (US), Cybernance (US), Coalition (US), Resilience (US), Kovrr (Israel), Sayata Labs (Israel), Zeguro (US), Ivanti (US), SafeBreach (US), and Cronus Cyber Technologies (Israel).
RedSeal offers a cybersecurity analytics platform to enterprises and develops Security Risk Management (SRM) software for managing and preventing network breaches and failures. It analyzes businesses’ networks, creates an analytics model for monitoring the network’s performance, and provides a digital resilience score enabling users to benchmark and set targets for network security. It provides insights for identifying at-risk assets and corrective actions that must be taken. Its Digital Resilience Score solutions aid clients, brokers, and underwriters to measure their network resilience and ensure network security. It caters to multiple industries, including governments, utilities, healthcare, banking, and insurance. Red Seal’s customer base includes Global 2000 companies and government agencies, such as US federal agencies (DoD), civilian, and intelligence communities. It serves other industries, such as finance, healthcare, retail, and technology sectors, and has presence across North America, Europe, and Asia.
SecurityScorecard is a cloud-based provider of risk scorecards and an information security company that rates the security postures of corporate entities. The product offers real-time threat intelligence and risk awareness by automated real-time monitoring of all risk factors. The product’s features include the status of security levels of every organization and data sharing. Its comprehensive solution range includes enterprise cyber risks, third-party risks, executive-level reporting, cybersecurity insurance, due diligence, and compliance. Financial services, insurance, healthcare, government, retail, and ITeS are the major verticals that SecurityScorecard serves. It also offers monitoring signals of the company, partner networks, categories, and assesses signals at malware events, uses a real-time query to get a collective scorecard of any domain using a search engine. SecurityScorecard’s patented technology is used by organizations to assess their cybersecurity risks, insurance underwriting, and third-party risk management.
BitSight, based in the United States, specializes in security ratings and risk assessment solutions. It provides cybersecurity ratings that help organizations manage third-party risk, monitor security performance, and make data-driven decisions to improve cybersecurity posture. BitSight’s platform collects and analyzes vast amounts of security data to generate security ratings for businesses and their vendors, offering insights into security vulnerabilities and compliance issues.
Prevalent, headquartered in the United States, offers third-party risk management solutions designed to assess and manage risks associated with vendor relationships. The company provides a comprehensive platform that automates vendor risk assessment, monitoring, and remediation processes. Prevalent’s solutions enable organizations to streamline vendor risk management, ensure compliance with regulations, and protect sensitive data from security breaches and cyber threats.
UpGuard, also based in the United States, specializes in cybersecurity risk assessment and third-party vendor risk management. The company offers a platform that helps businesses monitor and assess the security posture of their digital assets and third-party vendors. UpGuard’s solutions include security ratings, breach detection, and data leak prevention to mitigate cyber risks and ensure data protection. Their platform provides continuous monitoring and alerts organizations to potential security vulnerabilities and compliance issues in real-time.
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