Global Cyber Security Insurance Market Will Grow To $61.2B

The cyber insurance market continues to grow at a steady, yet impressive rate. According to a recent Future Market Insights’ Report, the cyber security insurance market is expected to reach US$ 11.5 Billion this year and it will register a forecast Compound Annual Growth Rate (CAGR) of 18.2% from this year to 2032. 

Growing security threats and financial losses are expected to push the market for cyber security insurance to US$ 61.2 Billion by the end of 2032.  

Business owners regularly purchase insurance policies in order to keep themselves protected from a variety of unforeseen circumstances, such as natural disasters as well as lawsuits brought by unhappy customers.
Business is implementing insurance policies in response to the rising risk of data breaches and cyber security risks. The insurance type segment is expected to be dominated by standalone insurances during the forecast period. 

As businesses embark on their digital journey they face new opportunities and threats in the market. In addition, companies are being held to a higher standard of governance. Moreover, society as a whole is struggling to combat the rising impact of cyber incidents, such as ransomware, which is gaining traction.

The Key Findings Include:

• By end user, cyber security insurance solutions to be leveraged maximum by insurance providers, registering an 18% CAGR.

• Presence of major key players and the growth of IT business in U.S. to push the market to US$ 21.3 Billion by 2032.

• Growing telecom businesses to push the Chinese market at a CAGR of 17.5% from 2022-2032.

• Global cybersecurity insurance market to yield an absolute value of US$ 49.8 Billion.

• U.K. market is expected to grow at a CAGR of 17.1% during the forecast period.

“With a growing demand for cybersecurity insurances due to concerns with social media platforms and the growing digitization and threats in the BFSI industries, cybersecurity insurances are expected to grow rapidly in coming years " the report says. 

Competitive Landscape

With the growth of cloud-based technologies and the adoption of cloud-based storage systems, the market is projected to grow in the future.  Strategic partnerships can provide a company with the potential to expand its operational capabilities. 

Insurers provide smart and dynamic policies that can help recover a company’s financial losses in the market.

In September 2021, Microsoft announced a partnership with At-Bay, a pioneering cyber insurance company. The cyber risk that each company it insures is assessed by At-Bay through its modern approach to risk management. Customers are then given actionable insights on how to improve their security posture. Using improved policy terms and pricing to encourage the implementation of security controls has strengthened the overall security of At-Bay's portfolio companies.

In January 2022, as part of its 2023 strategy, the Asian Investment Bank (AIB) and IBM signed an agreement worth €65 million over three years to accelerate the bank's digital transformation, meet its customer-first commitment, and accelerate its transition to hybrid cloud technologies. IBM's technology will help AIB expand its cyber resilience and fraud detection capabilities, ensuring the high quality and safety of its digital services. 

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