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

Global Cybersecurity Insurance Market size was valued at USD 9.8 billion in 2022 and is poised to grow from USD 10.93 billion in 2023 to USD 26.1 billion by 2031, growing at a CAGR of 11.50% during the forecast period (2024-2031).

Strict regulatory compliance in several economies drives the market. Regulations pertaining to cybersecurity and data protection have also been tightened globally. For example, regardless of the organization's location, all organizations that process the personal data of individuals located in the European Economic Area (EEA) are subject to the General Data Protection Regulation (GDPR), the most stringent data protection regulation globally that was adopted by the European Union. Strict guidelines for the collection, use, and storage of personal data are set forth in the GDPR. Additionally, it grants people robust rights over their data, including the ability to access, edit, and remove it.

In order to control potential liabilities and comply with these requirements, organizations may be legally forced to carry cybersecurity insurance, which would promote healthy market growth. In order to satisfy the changing needs of businesses, insurance companies are always coming up with new ideas and products. In addition to standard insurance coverage, several insurers also provide cyber risk management services. These services can assist companies in assessing their cyber risk, creating and putting into place security measures, and responding to intrusions. Parametric cyber insurance makes payments only when a certain event—like a denial-of-service attack or data breach—occurs. This is not the case with typical cyber insurance, which makes payments according to the insurer's actual financial losses.