| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 16.1 Billion |
| 2025 Market Size | USD 18.9 Billion |
| 2032 Forecast | USD 65.2 Billion |
| Growth Rate (CAGR) | 19.30% |
| Largest Region | North America |
| Fastest Growing Region | APAC |
| Nature of the Market | Fragmented |
| Largest End User Category | BFSI |
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The cyber insurance market size stood at an estimated revenue of USD 16.1 billion in 2024, and it is expected to grow at a CAGR of 19.3% during 2025–2032, to reach USD 65.2 billion by 2032. This is ascribed to the increasing number of virus, malware, and other types of attacks on IT networks, the surging legislation concerning cybersecurity, and the implementation of related insurance as a risk mitigation strategy.
For instance, according to Consumer Sentinel Network, more than 390,00 reports of government benefits fraud in 2021 were received, which was roughly in line with the 394,324 reports registered in 2020. Owing to such an increase in attacks on IT networks, legislation in numerous countries has mandated the implementation of improved and enhanced security policies to protect consumers’ personal details on the basis of moral and ethical criteria.
Moreover, organizations can reduce the effect of such events with the help of a robust insurance policy. It shields companies against expenses of internet-based attacks on IT infrastructure, information policy, and governance, which frequently are not covered by conventional reimbursement packages. In addition, several nations sanction businesses for any breach of critical records and set controlling terms and conditions. Also, cybercriminals attack regularly on small and medium-sized businesses, due to their weak cybersecurity solutions. This increases the need for comprehensive policies among these businesses.
The data breach category held the largest share in 2024, of 55%, and it is also witnessing the fastest growth. With organizations becoming more reliant on cloud computing, digital data, and workforce mobility, cases of breaches of sensitive information have risen exponentially. Sensitive information of customers and organizations is generally stored on enterprise databases, local machines, and cloud servers, which, sometimes, are susceptible to breaches.
In the past couple of years, several large companies and federal departments, such as the U.S. Office of Personnel Management (OPM), Anthem Insurance Companies Inc., Uber Technologies Inc., Quora Inc., Facebook Inc., Cathay Pacific Airways Ltd., Marriott International Inc., and Equifax Inc., have experienced data breach threats. In this regard, cyber insurance helps organizations cover both first- and third-party financial losses that result from such breaches that may compromise sensitive company and customer information.
These policies are covered:
The standalone category dominated the market in 2024. Standalone policies provide organizations with the ability to instantly compensate first- and third-parties for losses in the event of a data breach. These policies reimburse the costs insured due to a breach, such as IT forensic costs, credit-monitoring costs, data restoration costs, cyber extortion (including ransom payments to hackers), and public relations expenses. Furthermore, these cover an insured’s legal liability to third parties and direct financial loss arising from social engineering frauds, phishing, spoofing, phreaking, and other kinds of IT-related frauds.
During the forecast period, however, the integrated category is projected to attain the faster growth, with 20%. Integrated policies are often purchased by SMEs to cover data breach losses, cyber extortion, information replacement and restoration expenses, and business interruption costs. With the rise in the number of SMEs globally, the demand for integrated cyber insurance policies is also projected to increase.
These product types are covered:
The BFSI category accounted for the largest revenue share, of 40%, in 2024. As per studies, the BFSI sector recorded over 18% of all the cyberattacks carried out in 2023. BSFI companies have substantially transformed themselves technologically to meet the evolving needs of customers. From handling paper records to providing one-click payment options and facilitating online purchases, banks and insurance companies have largely invested in advanced technologies to enhance the customer experience. While technology adoption has aided their business growth in several ways, it has also increased cybersecurity concerns in such organizations. Moreover, banks are now increasingly shifting their workflow to the cloud and hybrid models for the management of data.
During the forecast period, the healthcare category is projected to witness the fastest growth. Due to the increasing digitalization and growing penetration of the internet in the healthcare sector for easy access to individual’s information have created online vulnerabilities, crucial records are being exposed to internal and external threats. Thus, to protect themselves from malicious intent and mitigate related losses, healthcare organizations are opting for cyber insurance. Policies related to data breaches, hacking, and digital security help organizations cover legal fees, in addition to hardware, software, damaged network, and associated losses.
Also, the healthcare vertical is a major target of cybercriminals, as in the black market, stolen protected health information (PHI) is worth hundreds, even thousands of dollars. Since 2009, the highest number of data breaches have been registered by the healthcare industry. Further, a single data breach incident can cost healthcare organizations over USD 10 million.
This is because an individual’s personal health history, which includes illnesses, ailments, and surgeries, cannot be changed, unlike social security numbers or credit card information. For attackers, PHI is valuable, as they can use this information to target victims with scams and frauds that take advantage of the victim’s settlements or medical conditions. Furthermore, it can also be used to make fake insurance claims, enabling attackers to engage in the resale and purchase of medical equipment, in the name of a medical center. Such factors are leading to the rising trend of the increasing adoption of cyber insurance services in the healthcare sector.
These end users are covered:
Large enterprises dominate the market as it has been long since large enterprises begun understanding the inherent value of customer data. They use it to articulate and execute major business decisions, to better meet the customer demand, predict a customer’s propensity to purchase, and stay ahead of the competition. A considerable number of resources are required in order to effectively use the customer data. These datasets are of a highly confidential nature, due to which large-sized enterprises have significantly implemented cyber insurance services, in order to protect the vital business assets.
SMEs will witness the higher CAGR during the forecast period, of 21%. With the increasing competition in all markets, SMEs have also started leveraging their existing customer data to deliver improved customer experiences. There are numerous reasons for these small- and medium-sized players to show a growing interest in cyber insurance, the most important of which is a rise in SME-targeting cyber-attacks.
These enterprises are covered:
The insurance category dominates the market due to the increasing incidence of cyberattacks, such as malware attacks, data breaches, and phishing, and the fact that the most fateful consequence of such cyberattacks is the incursion of financial loss, the demand for insurance services is on the rise.
The market is projected to witness the fastest growth in the claims category during the forecast period, with 22% CAGR. This will be on account of the rising threat on digital capital and the risk of business failure due to such cyberattacks,
These services are covered:
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Globally, North America accounted for the largest revenue share, of 40%, in 2024. The increased focus on the legal framework pertaining to cybersecurity and the development of related government policies drive the regional market. The legislations for the security of IT infrastructure and the rising adoption of these policies among SMEs in the region lead to the adoption of insurance policies.
Moreover, the rising number of data breaches, adoption of next-generation technologies, surging awareness to protect customers’ social security numbers, pan card details, and health records, and increasing need for coverage of financial losses benefit the market. As per government sources, the total losses due to cyberattacks in the U.S. in 2023 amounted to USD 12.5 billion, compared to USD 10.3 billion in 2022. States with notoriously high rates of such incidents include California, Texas, Florida, Georgia, New York, Ohio, Arizona, Pennsylvania, Illinois, Washington, Michigan, and Nevada. As per another report, almost 60% of the ransomware attacks registered globally are targeted at the U.S.
In contrast, the APAC market is projected to attain the fastest growth during the forecast period, with 24% CAGR. Several developing economies in the region, including China and India, are facing cloud security vulnerabilities and attacks on blockchain systems. Owing to this, governments of these economies are taking strategic measures, such as the implementation of policies to enhance IT security and the launch of initiatives to spread awareness regarding cyberattacks.
This has encouraged market players to potentially take advantage of the opportunity by offering insurance policies to cover the losses. Also, players introduce advanced insurance products, in order to cater to the growing business need and protect enterprises from an increasing number of cyberattacks. As per a report by IBM, APAC was the most-targeted region by cybercriminals in 2023, accounting 31% of all the attacks. Moreover, the World Cybercrime Index ranks China, North Korea, and India as third, seventh, and tenth in terms of the risk of cybercrime. Another study ranks Tajikistan, China, and Bangladesh as being the worst prepared for such incidents. Other countries often mentioned as having A high risk of such attacks are Indonesia, Pakistan, Kyrgyzstan, and Sri Lanka, all of which are in APAC.
The regions and countries analyzed for this report include:
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