Rise in cyber-attacks and increase in mandatory legislation regarding
cyber security drive the growth of the global cyber insurance market. On the
other hand, lack of standardized policies curbs the growth to a certain extent.
Nevertheless, development of products and services and progress in emerging
economies are anticipated to usher in multiple opportunities in the near
future.
According
to the report, the global cyber insurance industry was estimated at $4.85 billion in 2018, and is expected to hit $28.60
billion by 2026, registering a CAGR of 24.9% from 2019 to
2026.
The large enterprises segment to dominate by 2026-
Based
on organization size, the large enterprises segment accounted for more than
two-thirds of the global cyber insurance market revenue in 2018, and is
projected to retain its dominance throughout the forecast period. Large
companies often purchase cyber insurance policies for protection against
cyber-attacks and other risks which, in turn, has fueled the growth of the
segment. At the same time, the SMEs segment is expected to portray the fastest
CAGR of 27.2% by the end of 2026. The fact that small- and medium-sized
enterprises are more susceptible to cyber-attacks has driven the segment
growth.
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The BFSI segment to lead the trail-
Based
on industry vertical, the BFSI segment contributed to one-fourth of the global
cyber insurance market share in 2018, and would maintain the lion's share by
2026. Rise in incidences of data breaches in large volumes of customer data has
augmented the growth of the segment. Simultaneously, the government &
public sector would showcase the fastest CAGR of 27.5% during the estimated
period. This is due to increase in cyber liabilities, data theft, identity
fraud, and cyber-attacks, which has left cyber insurance coverages at the
forefront of corporate governance in public sector companies.
North
America garnered the highest share in 2018-
Based
on region, North
America held the major share in 2018, reaping more than
two-fifths of the global cyber insurance market. Increase in data breach,
cyber extortion and disruptive events across business sectors in this province
have driven the market. The Asia-Pacific region, on the
other hand, is predicted to register the fastest CAGR of 26.9% till 2026. Rapid technological developments such
as automated production & technical processes and growing adoption of
internet of things along with, stringent regulatory landscape for data
protection have been driving the Asia-Pacific cyber insurance
market.
Frontrunners in the industry-
- American
International Group, Inc.
- Munich Re, Zurich
- Lockton Companies,
Inc.
- Aon plc
- AXA
- Berkshire Hathway
Inc.
- Allianz
- Lloyd's of London
Ltd.
- The Chubb Corporation