The global cybersecurity insurance market is expected to reach USD 17.6 billion by 2028, driven by the increasing cyber risks faced by organizations. According to a report by MarketsandMarkets™, the market is projected to grow at a CAGR of 11.4% during the forecast period, from USD 10.3 billion in 2023.
Organizations worldwide are becoming more aware of the potential dangers of cyber threats and the need to proactively manage and mitigate these risks. This has led to a rise in the adoption of cybersecurity insurance as a protective measure. Cybersecurity insurance provides financial support and reimbursement for expenses related to investigating, remedying, legal fees, reputation management, and potential lawsuits following a cyber incident. By having cybersecurity insurance in place, organizations can better manage the financial impact of cyber threats and maintain their stability.
Government agencies are expected to register the highest CAGR in terms of technology end users during the forecast period. Public sector entities are particularly vulnerable to cyber threats, as malware and hacking attacks continue to increase in sophistication, disrupting public services and causing significant financial losses. To combat these challenges, government agencies and organizations are seeking cybersecurity insurance solutions to access funds for covering the costs associated with cyber breaches. These insurance policies help mitigate financial risks by covering expenses such as computer forensics, legal defense, breach notification and remediation, and credit monitoring services. However, a report by the Ponemon Institute reveals that only 19% of government agency survey respondents have procured cybersecurity insurance policies, highlighting the need for increased investments in cybersecurity insurance technology as a proactive measure.
North America holds the largest market size in the global cybersecurity insurance market. The US and Canada, known for their advanced infrastructure and extensive adoption of cyber technology, contribute significantly to the market. The stringent regulations in the US create a favorable landscape for cybersecurity insurance solution providers, offering diverse opportunities across various industries. With the increasing frequency of cyberattacks and the rise of Bring Your Own Device (BYOD) policies, enterprises in North America are prioritizing data security and protecting themselves from potential financial losses by embracing cybersecurity insurance policies.
In conclusion, the global cybersecurity insurance market is expected to experience significant growth in the coming years due to the increasing cyber risks faced by organizations. With the growing awareness of these risks and the need for proactive risk management, organizations are turning to cybersecurity insurance as a crucial tool in mitigating the financial consequences of cyber incidents. As government agencies and organizations worldwide recognize the importance of cybersecurity insurance, the market is projected to reach USD 17.6 billion by 2028.
