Cyber Insurance Demand to Surge Driven by Increase in Cyberattacks

Cyber insurance industry share is set to surge at a commendable pace over the forthcoming years. The escalation is driven by the increasing product adoption by various establishments. The solutions are in high demand for understanding and quantifying the threat vectors leveraged by criminals for the launch of ransomware and other types of cyberattacks.

According to Fortune Business Insights, the global market size for cyber insurance was valued at USD 13.33 billion in 2022. The market is estimated to expand from USD 16.66 billion in 2023 to USD 84.62 billion in 2030, exhibiting a CAGR of 26.1% over 2023 to 2030.

The industry growth can be attributed to an increase in the adoption of various initiatives by market players for maintaining their position in the market. Some of these steps include merger agreements, acquisitions, and the launch of new products.

For instance, in February 2023, Measured Analytics and Insurance, an AI-powered insurance provider for cyber issues, announced a strategic collaboration with exposure management company Tenable. The deal unlocked vulnerability risk insights and the potential of inside-out cyber security data for leveraging in its analytics rich underwriting process.

Given below are top cyber insurance companies. They are adopting an array of steps for strengthening their position in the market. These comprise collaborations, partnerships, the formation of alliances, and others:

1. The Travelers Indemnity Company:

The company offers pre-breach solutions such as cyber academy, cyber solutions, and cyber security coaches. It distributes policies across numerous industries such as large enterprises, public corporations, technological companies, and SMEs. The insurance covers regular defense expenses, cyber extortion, business interruption, and litigation expenses.

In October 2022, the company hit the headlines for hosting numerous cyber-security solutions that guided enterprises toward the benefits of cyber insurance.

2. AXA XL: 

One of the top cyber insurance companies, AXA XL offers cyber insurance policy with additional protection against privacy threats and emerging technologies. It further furnishes essential threat protection against extra expenditure, privacy regulatory defense, cyber extortion, and data breach and recovery.

In November 2022, the company incorporated insurance for cybersecurity into its omissions and lawyer error program for aiding clients with benefits of additional security.

3. Chubb: 

The company offers cyber insurance services equipped with 24/7 response support and user-friendly policy and threat management advice. These services are distributed as a simplified and standard version. Of these, the standard version includes third party and first party protection such as privacy and network liability, cyber extortion, and data and system recovery.

In October 2022, Chubb unveiled their 5^th annual report, highlighting a rise in safety measures adopted by consumers against cyber threats such as 2 factor authentication.

4. American International Group Inc.: 

The company’s cyber insurance products are distributed across multiple clientele that comprise CyberEdge PC, CyberEdge, EAGLE, Property Performance, CyberEdge Plus, and others.

In March 2020, the company entered a partnership with cyberscout for providing latest protection to their clientele and the addition of security measures against emerging threats. Furthermore, in September 2019, AIG announced coverage protection for non-physical and physical cyberattacks into the insurance policies for the provision of advanced tools for risk assessment and the maintenance of client engagement.

5. Beazley Group: 

The company offers cyber insurance which is distributed between SMEs and large enterprises. The company gives BBR (Beazley Breach Response), which can be implemented via on-premise and cloud deployment platforms.

In May 2022, Beazley group implemented an online incident response forum platform for their U.S. clientele. This enabled centralized communication and time-efficient query management between policyholders and the company.

6. AXIS Capital Holdings Limited: 

The company categorizes SMEs and large scale enterprises. The insurance is deployed in large enterprises that feature USD 25 million in incident response, limits, crime and reputational harm, tech E&O, and PCI-DSS among others.

In September 2022, the company rolled out ACTM. The solution was launched with modification features for increasing business domain and the provision of cyber insurance services to SMEs.

7. CNA Financial Corporation: 

The company gives Netprotect360, CNA Cyberprep, Epack3, eps plus, which is categorized into cyber insurance offerings. The services cover broad media, reputational harm, network failure, and payment card industry. In addition, Epack3 gives modular insurance capabilities to cater to various types of clientele.

In March 2021, CNA rolled out CyberPrep. The integrated cyber threat platform enabled guidance toward response, threat identification, and mitigation for CNA policy holders.

8. BCS Financial Corporation: 

The company provides underwritten cyber solutions that include nano cyber, micro cyber, cyber liability, and others. Micro cyber is a dedicated SME based deployment featuring easy installation. Nano cyber is a liability program deployed by self-employed individuals.

In December 2022, BCS Financial Corporation was recognized as the most innovative company. This enabled further business growth and partnership opportunities owing to recognition in North America.

9. The Hanover Insurance Inc.: 

Hanover provides coverages and cyber expertise into an all-inclusive insurance fragmented into risks and claims. It provides cyber solutions such as liability and data breach. The company gains cyber expertise from existing policy holders and deployments that enhance deployment in industries such as technology, retail, manufacturing, and professional services among others.

In June 2020, the company improved their policy offerings for technology clients via the integration of Hanover technology professional and cyber advantage. This widened the company’s capabilities concerning cyber risks, omissions, and errors.

10. Zurich Insurance: 

The company offers insurance for cyber related issues integrated functions that include endorsements, clarified exclusions, and corporate income loss extensions. The organization’s services provide coverage benefits such as cyber extortion, digital asset replacement, and breach costs.

In September 2022, Zurich supported German start-up Baobab. This helped in increasing the company’s regional growth by deploying insurance offering in the European region.

Surge in Cybersecurity Risks and Data Breaches to Offer a Market with Various Opportunities

In the forthcoming years, the industry is set to exhibit commendable growth over the forecast period. The surge is driven by the escalating cybersecurity risks and rising data breaches for the implementation of cyber insurance policies. Additional factors impelling market expansion include surging digitalization, online shopping, and others.