Global cyber insurance market to skyrocket by $42.81b by 2027

Surge in cyber-attacks prompts increased demand for cyber insurance to safeguard against financial and reputational risks.

The global cyber insurance market is projected to expand by $42.81b from 2022 to 2027, with a forecasted CAGR of 35.92%. In 2023, the market grew 30.9% on a year-on-year (YoY) basis, according to Technavio.

The surge in cyber-attacks has heightened demand within the corporate sector, necessitating protection against potential financial and reputational harm. 

Both businesses and individuals are actively seeking coverage to mitigate rising risks, driven by the recognition of reputational benefits associated with comprehensive coverage.

Companies are adopting various strategies like alliances, partnerships, mergers, acquisitions, and geographical expansion to strengthen their market presence. 

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The market, segmented by type (large enterprises and small and medium-sized enterprises), solution (standalone and packaged), and geography (North America, Europe, APAC, South America, and Middle East and Africa), sees significant growth in the large enterprises segment due to their higher vulnerability to cyber attacks. 

Vendors are tailoring packages to meet the needs of large enterprises, including high coverage limits, comprehensive coverage, specialised services, and global coverage.

North America is expected to contribute 57% to the market growth during the forecast period, driven by increasing awareness of cyber insurance, high adoption of technologies, rise in online transactions, and growth in the e-commerce industry.