Cyber Insurance Market
Report ID: SQMIG40N2012
Report ID: SQMIG40N2012
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Report ID:
SQMIG40N2012 |
Region:
Global |
Published Date: August, 2025
Pages:
178
|Tables:
178
|Figures:
78
Global Cyber Insurance Market size was valued at USD 16.81 Billion in 2024 and is poised to grow from USD 20.16 Billion in 2025 to USD 86.09 Billion by 2033, growing at a CAGR of 19.9% during the forecast period (2026–2033).
The global cyber insurance market is riding a wave of robust tailwinds, driven by several key enablers. First, there is a rapidly accelerating incidence and growing sophistication of cyber threats—specifically ransomware, phishing, and large-scale data breaches—that are posing increasing financially, reputationally, and operationally damaging impacts to organizations. Second, the vast opportunities that digital transformation—including cloud computing, IoT, AI, remote work, and increased IT connectivity—are available to industries is opening up an abundance of attack surfaces and clearly demonstrates the necessity of insurance in enterprise resilience initiatives. Third, regulators globally have imposed tighter data protection and breach notification laws (e.g., GDPR, CCPA, NIS‑2, EU Cyber Resilience Act), forcing companies to evaluate obtaining cyber insurance in order to mitigate penalties for non-compliance while aligning with other risk governance mechanisms.
On the flip-side, several industry-wide constraints are impacting growth factors including several entities’ low awareness—especially within SMEs—on the value of cyber insurance compared to traditional cybersecurity tools, which causes many to deem it unnecessary, and thus leads to being unwilling adoptors of policy. The lack of customer adoption is largely linked to widespread limitations stemming from no set underwriting frameworks and any consistent credentials. Insurers are known to possess limited amounts of data making historical incident data sparse while uncertainties with respect to risk quantification led to challenges.
In summary, the cyber insurance market is on a solid growth trajectory - expected to grow from roughly USD 16.5 billion in 2025 to USD 32+ billion in 2030, with regional growth in Asia-Pacific, and greater uptake by SMEs. But, underpinning these opportunities are some basic hurdles - lack of awareness, undefined products, high cost, and lack of consistent risk assessment standards - that slow adoption and prevent market maturation.
How AI is Transforming Cyber Insurance Market?
Artificial Intelligence is drastically transforming the cyber insurance landscape in several ways—enabling better underwriting, streamlining the claims process, and offering continual risk awareness. Machine learning models are now capable of processing considerable data sets, ranging from network traffic to employee behavior, much more accurately and providing specifically tailored risk assessments and objective risk scores to replace antiquated questionnaires. With this combination of data attributes, devising dynamic pricing models which assess a client's cyber posture in real-time is possible. AI is also now sufficient to manage claims triage, automate fraud detection, and significantly decrease durations across participants in the requisite insurance activity.
One notable example of the market's change Lloyd's of London insurers recently brought a new policy to market via Armilla which will indemnify against mistakes made by AI chatbots, which could include hallucinations or misconfigurations, which can result in reputational or legal risk. This acute grouping of losses is indicative of insurers understanding more about risks which are based on AI, and service providers evolving toward policy designs which consider AI risks, facilitating coverage for new core digital liabilities and demonstrating a growing comfort in engaging fuel AI adoption.
Market snapshot - 2026–2033
Global Market Size
USD 14.02 billion
Largest Segment
Large Enterprise
Fastest Growth
Large Enterprise
Growth Rate
19.9% CAGR
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Global Cyber Insurance Market is segmented by Offering, Risk Type / Cyber Threat Category, Coverage, Enterprise Size, Provider Type, Industry Vertical and region. Based on Offering, the market is segmented into Solution and Services. Based on Risk Type / Cyber Threat Category, the market is segmented into Phishing & Social Engineering Attacks, Ransomware & Malware Attacks, Distributed Denial of Service (DDoS), Data Breaches, Insider Threats, System & Software Vulnerabilities, Cloud Security Failures, IoT/OT Cyber Risks, Cryptojacking and Others. Based on Coverage, the market is segmented into First-party Coverage and Third-party Coverage. Based on Enterprise Size, the market is segmented into Large Enterprise and Small and Medium-sized Enterprise. Based on Provider Type, the market is segmented into Technology Provider and Insurance Provider. Based on Industry Vertical, the market is segmented into BFSI, IT and Telecommunication, Retail and E-commerce, Healthcare, Manufacturing, Government and Public Sector and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Why Are Large Enterprises Leading the Cyber Insurance Market, and How Are SMEs Emerging as a Key Growth Segment?
Large enterprises are estimated to account for a major chunk of the global cyber insurance market size. High spending potential and more risk exposure are key factors that push large enterprises to opt for cyber insurance solutions. Moreover, the extensive investment of large enterprises in risk management and assessment also helps them lead the adoption of cyber insurance on a global level. Imposition of stringent data privacy and safety mandates also promotes cyber insurance demand in this segment.
Meanwhile, the demand for cyber insurance in small and medium enterprises (SMEs) is slated to increase at a rapid pace over the coming years. Rising awareness regarding sophisticated cyberattacks and growing spending on risk management by SMEs are also contributing to Cyber Insurance Market growth via this segment. Creating affordable cyber insurance solutions for SMEs could pay off big time for market players in the long run.
Which Industries Are Driving the Demand for Cyber Insurance and Why?
The Banking, Financial Services, and Insurance (BFSI) industry is forecasted to lead the demand for cyber insurance over the coming years. Increasing risks of cyberattacks and data breaches in BFSI industry owing to rising digital transactions around the world will also help the dominance of this segment. Moreover, rising incidence of financial frauds through hackers is also promoting the adoption of cyber insurance in the BFSI industry going forward.
Meanwhile, the demand for cyber insurance in the healthcare industry is projected to increase at a robust pace going forward. Rapid digitization of the healthcare industry and imposition of stringent data privacy and safety regulations are slated to promote the adoption of cyber insurance in this segment through 2031 and beyond.
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How is North America being Dominating in Cyber Insurance Industry?
In the most recent years, North America has accounted for the largest market share of the overall cyber insurance market over 35–37% of the global market share in 2023 overview. In the U.S., highly publicized data breaches and state regulators (NYDFS Cybersecurity Regulation, CCPA/CPRA) continue to mandate organizations to establish better cyber risk management, which has led to heavy adoption of cyber insurance. For example, large enterprise adoption for U.S. organizations 'accessed' via the 2023 industry report, was at 76% of firms.
U.S. Cyber Insurance Market
In the U.S., the on-line insurance industry, generates approximately 87.6% of the North America regional cyber insurance revenue. The NYDFS Cybersecurity Regulation, CCPA/CPRA, HIPAA and SEC have all written mandates for organizations to identify cyber insurance.
Canada Cyber Insurance Market
Canada is also and growing regional insurance market, driven in part, by OSFI requiring banks and insurers to follow strict cyber risk standards. Additionally, the Canadian Centre for Cyber Security (CCCS) issues threat alerts which raise the profile of ransomware and other cyber risk impacting organizations insurance coverage and uptake.
Why Asia Pacific Fastest Growing Cyber Insurance Market in 2024?
Asia Pacific is the fastest growing region, with jumps in policy issuance of 47%-48% from 2022-2024. The rise stems from the increasingly rapid pace of digital transformation, a surge in fintech business growth and increasingly strict regulations (for example, China’s PIPL). India alone reported an increase in cyberattacks of 48% in 2023 and the greater demand for cyber insurance in response.
China Cyber Insurance Market
China remains the vanguard for growth in Eastern Asia with an estimated 18.6% CAGR through 2034. The government initiated MIIT launched industrial cybersecurity strategies in early 2024 and strengthened public sector resilience in addition, to provide for insurance uptake in industries and for critical infrastructure.
India Cyber Insurance Market
India registered by a CAGR of approximately 19.1% to 2034 as a function of fintech growth and increase in BFSI sector attacks caused many firms to move to cyber insurance. As the digital payments space expands and regulations grow, companies are leaning to cyber insurance as a means to take a systemic approach toward regulatory compliance and risks.
Australia Cyber Insurance Market
Australia leads APAC in take-up rates for cyber insurance as a result of the introduction of the Notifiable Data Breaches framework and the introduction of the Cybert Security Bill 2024 (which will, among other elements, requires mandatory reporting of ransomware incidents and regulation of critical-infrastructure). These legal changes and the pace of public and private sector policy adoption.
Why Europe is second-largest share in Cyber Insurance Market?
Europe has around 23-25% of the global market. The jurisdictional regulatory drivers like GDPR (which had €2.8 billion worth of fines in 2023), the EU Cyber Resilience Act, and the NIS2 Directive have all heightened risk awareness and compliance-driven insurance demand. After the breach reporting obligation, many mid-sized enterprises are now buying insurance.
Germany Cyber Insurance Market
Germany's cyber insurance market has a huge advantage in supporting projects for example the IT-Grundschutz by BSI - German Federal Office for Information Security, or the Alliance for Cyber Security, with 6,800 individual, public institutions cooperating with the government and private sector. There are also a variety of organizations trying to improve the culture of cyber hygiene which are all important to underwriters for risk modelling.
France Cyber Insurance Market
France has a strong digital economy and a register of regulatory requirements, especially with the upcoming EU DORA requirements to achieve financial resilience criteria. France is seeing importance across the BFSI spaces and the enterprise as more organizations are looking into cyber insurance coverage.
UK Cyber Insurance Market
In the UK, we are looking at a much more mature and very strong level of penetration within the cyber insurance market. There are existing regulatory frameworks enforced by the Board of England, FCA and PRA, which have to assume operational resilience, most importantly with mandatory reporting on breaches and supply-chain obligations which may have been a little obscure until now.
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Cyber Insurance Market Drivers
Digital Transformation
Increased Losses Due to Cyber Attacks
Cyber Insurance Market Restraints
Lack of Standardization
Limited Coverage and High Premiums:
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Rapidly evolving cyber threat landscape makes cyber insurance market growth a highly opportune one for new as well as leading companies. Lowering premiums and expanding coverage should be the prime focus of cyber insurance providers if they wish to stand out in the competitive landscape. Collaborations and partnerships will be highly popular and preferred strategies for all cyber insurance companies in the future. Companies should also work on standardizing their policies to expand their business scope on a global level.
Top Player’s Company Profiles
Recent Developments in Cyber Insurance Market
Are tighter government reporting laws fueling insurance adoption?
The U.S. SEC disclosure of material cyber incidents within 4 business days and the EU’s NIS2 and Cyber Resilience Act (CRA)—increase liability exposure. Companies are looking for cyber insurance to reduce the direct pile of fines and reputational consequences resulting from these frameworks.
Is AI-driven underwriting reshaping risk assessment standards?
Governments including the U.S. state of Colorado are publishing AI governance guidance for insurers that utilize AI in underwriting and claims workflows. As regulators look for transparency, insurers are moving quickly into a mix of AI to establish more agile risk scoring processes, meet demands for AI fairness compliance, and, finally, be able to meet minimum compliance levels.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, high incidence of cyberattacks and data breaches and rising emphasis on reduction of losses due to cybercrime are slated to drive cyber insurance market growth. However, lack of standardization and high premiums and limited coverage are slated to impede market development potential in the future. Presence of key cyber insurance companies in the North American region allows it to emerge as the dominant regional market in the world. Large enterprises are slated to spearhead revenue generation in the long run. Developing custom cyber insurance solutions and offerings will pay of big time for market players in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 16.81 Billion |
| Market size value in 2033 | USD 86.09 Billion |
| Growth Rate | 19.9% |
| Base year | 2024 |
| Forecast period | 2026–2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Cyber Insurance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Cyber Insurance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Cyber Insurance Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Cyber Insurance Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global Cyber Insurance Market size was valued at USD 16.81 Billion in 2024 and is poised to grow from USD 20.16 Billion in 2025 to USD 86.09 Billion by 2033, growing at a CAGR of 19.9% during the forecast period (2026–2033).
Rapidly evolving cyber threat landscape makes cyber insurance market growth a highly opportune one for new as well as leading companies. Lowering premiums and expanding coverage should be the prime focus of cyber insurance providers if they wish to stand out in the competitive landscape. Collaborations and partnerships will be highly popular and preferred strategies for all cyber insurance companies in the future. Companies should also work on standardizing their policies to expand their business scope on a global level. 'AXIS Capital Holdings Limited (Bermuda)', 'Beazley Group (United Kingdom)', 'The Hartford Financial Services Group, Inc. (United States)', 'CNA Financial Corporation (United States)', 'Tokio Marine HCC (Japan)', 'Hiscox Ltd (Bermuda)', 'Munich Re Group (Germany)', 'Berkshire Hathaway Inc. (United States)', 'Fairfax Financial Holdings Limited (Canada)', 'Markel Corporation (United States)', 'American International Group, Inc. (United States)', 'Sompo Holdings, Inc. (Japan)', 'Zurich Insurance Group (Switzerland)', 'Liberty Mutual Holding Company Inc. (United States)', 'Travelers Companies, Inc. (United States)', 'Swiss Re Ltd. (Switzerland)', 'Arch Capital Group Ltd. (Bermuda)', 'QBE Insurance Group Limited (Australia)', 'WR Berkley Corporation (United States)'
Almost all industries and countries are focusing on digital transformation to keep up with the evolving digital world. This increased digital transformation is also exposing the world to more cyber threats thereby boosting the demand for cyber insurance.
The U.S. SEC disclosure of material cyber incidents within 4 business days and the EU’s NIS2 and Cyber Resilience Act (CRA)—increase liability exposure. Companies are looking for cyber insurance to reduce the direct pile of fines and reputational consequences resulting from these frameworks.
How is North America being Dominating in Cyber Insurance Industry?
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