Cybersecurity Insurance Market Analysis

Cybersecurity Insurance Market Analysis

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Based on enterprise size, the market is segmented into large enterprises and SME. The large enterprise segment held a market share of over 61% in 2023. The adoption of cybersecurity insurance by large enterprises is primarily driven by the escalating cyber threat landscape, which includes the rising frequency and sophistication of cyberattacks. Large enterprises face significant financial risks from data breaches, ransomware attacks, and other cyber incidents, making insurance coverage essential to mitigate potential losses. Additionally, regulatory compliance requirements and the need to manage third-party risks further incentivize large enterprises to invest in cybersecurity insurance. The insurance market's innovative offerings and the growing awareness of cyber risks also contribute to driving the adoption of cybersecurity insurance among large enterprises.
 

Based on end use, the market is segmented into BFSI, IT & telecom, healthcare, manufacturing, retail, and others. The BFSI segment held a market share of 26% in 2023. Cybersecurity insurance is becoming increasingly popular across the Banking, Financial Services, and Insurance (BFSI) sector due to the sector's high-value transactions and sensitive customer data. The BFSI industry is a prime target for cybercriminals seeking financial gain or data theft. Instances of major cyber incidents, such as the Equifax data breach in 2017, demonstrated the potential financial losses and reputational damage that could result from cyberattacks in the sector. As a response to these risks, more BFSI institutions are opting for cybersecurity insurance to mitigate potential losses, protect customer trust, and ensure business continuity in the face of cyber threats.
 

North America cybersecurity insurance market held a market share of over 32% in 2023 and is expected to grow at a notable CAGR from 2024 to 2032. The growth of the market is driven by the region's highly digitalized economy, extensive use of technology, and the increasing frequency of cyberattacks. The prevalence of data breaches, ransomware attacks, and other cyber threats has raised awareness among businesses about the potential financial impacts of such incidents. Instances like the SolarWinds supply chain attack in 2020, which affected numerous government agencies and businesses, underscored the need for robust cybersecurity measures and insurance coverage. As a result, more businesses in North America are seeking cybersecurity insurance to protect against cyber risks and ensure resilience in the face of evolving threats.