Cybersecurity Insurance Market Size, Share, Growth Analysis, By Offering (Solutions, Services), By Insurance Coverage (Data Breach, Cyber Liability), By Insurance Type (Packaged, Standalone), By Compliance Requirement (Healthcare Compliance, Financial Services Compliance), By End User (Technology Providers, Insurance Providers), By Region - Industry Forecast 2024-2031

Drivers

Cyberthreats are Becoming More Frequent and Sophisticated

• Massive cyberattacks are becoming more commonplace worldwide, costing people, businesses, and governments a great deal of money. Cybercriminals target a variety of IT infrastructures to achieve radical, financial, political, or reputational goals. Ransomware that has impacted a lot of organizations include WannaCry, Petya, NotPetya, and BadRabbit. Due to this, businesses are spending more money on cybersecurity services and goods to reduce the likelihood of data breaches.

Cybersecurity Regulations to Increase Demand for Cybersecurity Insurance

• Thanks to technology advancements, cybersecurity insurance is becoming more and more common in small, medium, and large-scale enterprises. Additionally, businesses' willingness to obtain cyber insurance policies in the market rose due to the growing media coverage of corporate attacks. More stringent regulations are being applied to cyber dangers, including tighter requirements for risk management and underwriting.

Restraints

Insufficient Knowledge about Cybersecurity Insurance

• Governments and organizations are spending more on cybersecurity due to the growing awareness of security threats and the increase in cyberattacks. But despite cybersecurity insurance helping prevent financial losses, many businesses ignore it. Only a small portion of the estimated USD 1.5 trillion yearly cost of cybercrime is covered by insurance policies.

Lack of Information About Cybersecurity Insurance to Limit Development

• It is too early to predict the dangers that carriers will encounter or to create a portfolio of integrated goods and services that would draw customers to the market. Many hacks go undetected because most businesses are not required by law to disclose data breaches other than those that impact customer data. As a result, the insurance sector experiences widespread reporting bias, which impedes the development of policies for the market.