According to the latest market research study published by P&S Intelligence, the global cyber insurance market revenue is estimated to rise to USD 11,904.6 million in 2022 and grow at a 19.1% compound annual growth rate between 2022 and 2030, reaching a value of USD 48,328.4 million by 2030. This growth of the industry can be credited to the rising count of viruses, malware, and other kinds of attacks on IT networks, the rising governing concerning cybersecurity, and the execution of linked insurance as a danger mitigation strategy.
In the coming few years, the healthcare category is estimated to experience the fastest development, growing at a CAGR of more than 20%. The growing digitalization and increasing usage of the internet in the healthcare industry for convenient access to individual data have made online vulnerabilities, because of this important records are being exposed to internal and outside threats.
Worldwide, the North American region has dominated the market with the largest revenue share, approximately 50%, in recent years. This growth can be credited to the existence of key companies, like Chubb Group Holdings Inc., American International Group Inc., and Lockton Incorporated, in the continent.
Moreover, the augmented concentration on the legal framework refers to cybersecurity and the growth of linked government guidelines are other reasons aiding the regional industry to advance. Compulsory legislation with respect to the safety of IT infrastructure in different states in the U.S. and the improving acceptance of such policies among SMEs in the region have directed to the larger acceptance of insurance policies.
In recent years, the breach category dominated the industry with the largest share. This is mainly because companies are becoming more and more dependent on workforce mobility, cloud computing, and digital data cases of breaches of vital data have hiked exponentially. Sensitive data of customers and companies is commonly stored on company databases, cloud servers, and local machines, which, at times, are hypersensitive to breaches.
In recent years, the BFSI category held the largest revenue share, more than 25%, and the category is also estimated to lead the industry during the projection period. BSFI establishments have substantially changed themselves technologically to fulfill the evolving requirements of customers.
Banks and insurance companies have mainly invested in advanced technologies for improving customer experience, such as dealing with paper records, offering payment options via the One-Click option, or making Internet shopping easier. While the adoption of technology has had a positive effect on their business growth in several ways, it also raises security concerns within these organizations.
The key propellers of the cyber insurance industry include the surging legislation concerning cybersecurity, the growing count of cyberattacks, and the implementation of related insurance as a risk mitigation strategy.
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