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Global Cyber Insurance Market Seen Soaring ~21.7% Growth to Reach USD ~63.72 billion by 2032, Projects Univdatos Market Insights

According to a new report by Univdatos Market Insights, The Cyber Insurance Market is expected to reach around USD 63.72 billion in 2032 by growing at a CAGR of ~21.7%. Cyber insurance Cybersecurity insurance or cyber liability insurance is a special insurance that provides a client financial protection against a loss for cyber threats or risks. Such events may include hacking of an organization’s data, theft of identity, and ransomware to system breakdown which affects business operations. The common risks that are covered by cyber insurance include the cost of data recovery, legal bills, public relations, and informing the affected parties.

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Demand for Cyber insurance around the World

Cyber insurance has been rapidly increasing its demand worldwide due to the higher frequency and severity of cyber incidents. Recently, organizations such as government agencies, healthcare providers, financial institutions, and retail stores have become frequent targets of attacks or hackers due to their weak security.

There are several reasons as to why this demand is rapidly increasing. First, due to the COVID-19 pandemic, companies’ digitalization has been enhanced using digital platforms and cloud solutions. This shift has put organizations at a greater risk than before when it comes to being attacked hence the need for cyber insurance. Moreover, the increasing regulation around the world by jurisdictions including the European Union through the General Data Protection Regulation (GDPR) and the United States through the recently enacted California Consumer Privacy Act (CCPA) has made it mandatory to protect customer data. This means that companies may be left to bear the cost of a cyber-attack, including fines and reputational damage, increasing the need for cyber insurance coverage.

Application of Cyber Insurance Across Industries

Cyber insurance is becoming an essential component of risk management strategies across various industries, each of which faces unique cyber risks.

Below are some of the key sectors where cyber insurance is widely applied:

1. Healthcare

The sector that is most susceptible to cyber criminals’ break-ins is healthcare, as it processes a large amount of information about individuals. Cyber insurance is especially helpful for this sector as it helps companies cope with the loss that they suffer due to cyberattacks that involve confidential information about patients, the notification of those patients, lawyers’ fees, and further protection services for the victims of identity theft. Modern technologies and applications such as telemedicine, as well as the expansion of EHRs, have also served to heighten the necessity for comprehensive cyber insurance for healthcare organizations.

2. Finance

Another sector that has found itself on the radar of these hackers is the finance sector because of the large amount of valuable data that this sector holds in the form of customer’s personal and financial details. Cyber insurance helps financial institutions to offset possible loss because of data breaches, fraudsters, and regulatory penalties. Again, due to the high level of compliance demanded for this sector, cyber insurance assists financial institutions meet the legal demands on the protection of data and avoid attractive penalties.

3. Retail

Increased retail companies are engaging in electronic commerce hence becoming vulnerable to cyber risks including payment card fraud and data loss. Some key aspects of retail cyber insurance that are involved include costs of identification of fraud, costs related to credit checks, and costs related to public relations regarding trust to be restored after the incidence of the breach. Due to this emerging market of e-commerce in the retail business, the uptake of cyber insurance is likely to increase.

4. Manufacturing

Concerning cyber risk management, the manufacturing sector also requires more demands on cyber insurance, especially with the development of Industry 4.0 and the growth of connections in Industrial control systems (ICS). Cyber insurance can assist manufacturers prevent disruptions by ransomware attacks that can lead to the shutting down of operations and an enormous loss. It can encompass business disruption expenses, costs of getting operations back online and liabilities for sagging third-party data security.

5. Education

Today schools, colleges, and universities are becoming frequent victims of cyber criminals. In this sector, cyber insurance includes costs related to cybersecurity incidents that include violation of student and teacher information and the recovery of systems held to ransom by hackers. Since students are likely to spend their time in learning institutions adopting online and technology-based education systems, then the insurance for cyber risks is likely to increase.

Recent Developments/Awareness Programs: – Several key players and governments are rapidly adopting strategic alliances, such as partnerships, or awareness programs: –

•  March 2023: Saiber Innovation Technologies entered a partnership with CYMAR Management Ltd., a cyber-insurance specialist, to fulfill the cyber insurance needs of the maritime & logistics sector in the U.A.E. and help protect this sector from cyber-attacks.

•  February 2023: Cowbell, a cyber-insurance provider, entered a partnership with Millennial Shift Technologies to deliver Cowbell’s cyber insurance programs named Cowbell Prime 100 and 250 to access Millennial Shift’s e-trading broker platform, mFactor, for better operations.

•  July 2022: SBI General introduced the SBI General Cyber VaultEdge insurance plan, an insurance cover that protects against financial losses that occur due to cyber risks and attacks.

•   October 2022: AXA XL formed an incident response team in the Americas. The Cyber Incident Response team determines commitment to the clients and helps them before, during, and after a cyber incident.

•  July 2022: AXA XL announced cyber insurance roles and regional management appointments in the U.S. These roles will focus on the company’s growth strategy and discover innovative methods to address complicated cyber & technology risks.

Click here to view the Report Description & TOC  https://univdatos.com/report/cyber-insurance-market/

Conclusion

Global trends indicate marked and continuous growth of the cyber insurance market fueled by cyber threats and risks, regulatory environments as well as the expanding digitization of organizations. Though the price of cyber insurance depends on several factors, the value of its coverage against severe financial devastations cannot be overemphasized. It is imperative to reiterate that the nature of threats in cyberspace is continually changing and therefore so is the market for cyber insurance, with the insurance companies creating new and better products to counter the ever-emerging risks. According to the UnivDatos Market Insights, governments and regulatory bodies are imposing stricter data protection and privacy regulations, encouraging companies to secure cyber insurance. Furthermore, Incidents involving major corporations have highlighted the need for comprehensive cyber insurance policies. The market was valued at USD 11.2 billion in 2023, growing at a CAGR of ~21.7% during the forecast period from 2024 – 2032 to reach USD 63.72 billion by 2032.