Cyber Insurance Companies to Generate $14 Billion Worldwide by 2022

Cyber Insurance Market statement, published by Allied Market Research, predicts that the world market is projected to acquire $14 billion by 2022. Furthermore, there will be a compound annual growth of nearly 28 percent between the years 2016-2022. In 2015, North America constituted the biggest cyber insurance market. The increase in this region is enhanced by enforcement of data security regulations in the United States.

The high increase in alertness of cyber risks between data centers and boardroom owning to the rise in the number of cybercrime in the past twelve-three years is the critical factor that influences the market. The changing and complex nature of cyber risks confine the market growth of cyber insurance. Moreover, the low market adoption of cyber insurance policies in many developing nations provides a possible business chance for market players.

The world cyber insurance market is grouped based on geography, company size, and industry verticals. According to the industry verticals, the market is divided into financial services (BFSI), healthcare, information technology, healthcare, and other services. The early companies to adopt cyber liability insurance policies to secure their data are the information technology and financial services (BFSI). Based on a research, healthcare vertical makes about one-third of the revenue as most companies acquire large third-party data like employment details, consumers’ details and cyber criminals can efficiently misuse the data to make money.

According to the income generated by companies, large companies generate 1 billion and above, medium-sized companies generate 300 million to 1 billion, small-sized companies generate (100 million to 299 million), while cyber insurance market is grouped as very small-sized making 2.5 million to 99 million.

Regardless of the fact that cyber risks and cyber security are recognized as a significant threat to many companies that don’t acquire cyber insurance policies. The market has experienced a change in the scenario. Presently, companies with different sizes are likely to buy cyber insurance policies due to the legal developments. Large companies contribute drastically, for instance, in 2015; about 70 percent of the cyber insurance market has loss different type of data that has negatively impacted on their businesses.

North America leads the cyber insurance market and reports to be around 87 percent of the cyber insurance market in 2015. Compulsory legislation concerning cybersecurity in many states in the U.S has resulted into high adoption of cyber liability insurance regulations. The United States’s cyber insurance company is reputable, and the growth of cyber insurance company is predicted to reduce due to the increase in implementation of cyber liability insurance regulations.

There is the low implementation of cyber insurance liability policies in Europe compared to the United States. Recently, the European Commission has passed regulations concerning data security and protection that will be effective in 2018. These regulations will require companies to buy cyber insurance policies. Although Asia-Pacific accounts for small share percentage, it is expected to grow at a tremendous compound annual growth rate (CAGR) all through the forecast period due to a significant increase in cyber attacks.