Cyber Liability Insurance Market

Cyber Liability Insurance Market Overview

The global Cyber Liability Insurance Market size was valued at USD 16.29 billion in 2024 and is predicted to reach USD 54.83 billion by 2030 with a CAGR of 22.5% from 2025-2030.

Some of the factors that drives the cyber liability insurance industry are the growing incidence of cyber threat globally, boosting AI industry coupled with global cyber regulatory framework that prompts compliance among different companies. The substantial initial expenditure impedes the market growth and on the other hand, integration of blockchain in the cyber insurance business is expected to establish remarkable future growth.

In addition, few of the notable players such as AXA SA, Munich Re Syndicate Limited and Beazley Group plc are implementing several business strategies such as product launch to maintain market dominance. The key tactics by the global players is anticipated to drive competition and further fuel market growth in the industry.

Increasing Incidence of Cyber Threats Promotes Market Growth

The cyber liability insurance industry is propelled by the growing frequency of cyber-attacks globally as organisations increasingly recognize the financial implications of such attacks. According to the World Bank, an estimated global value of around USD 5.2 trillion is estimated to be in risk by cyberattacks between the years 2019-2023, around 10.5 million records lost or stolen annually and 438,000 of these happening on an hourly basis. As the number of such incidents grows, the potential for organisational damage and financial risks increases and this prompts the businesses to seek protective measures to safeguard their operations.

Boosting AI Industry Drives the Market Growth

The booming growth in artificial intelligence (AI) propels the market by magnifying threats from data breaches, cyber-attacks, and system collapse since AI technologies continue to gain more ground across various industries. As per McKinsey 2024, the revenue income from AI software and services is estimated to grow from USD 85 billion in 2022 to USD 1.5 trillion in a lower range of scenarios in 2040 and to USD 4.6 trillion in a higher range of scenarios, a CAGR of 17% to 25%. With AI being used to both protect and potentially breach digital infrastructures, the need for robust cyber insurance coverage intensifies leading to growth in the market.

Global Cyber Regulatory Framework Boost the Market Growth

The market is driven by the establishment of global cyber regulatory framework by government authorities as businesses serving under different jurisdiction strive to adhere to the legal frameworks to protect themselves from potential liabilities arising from non-compliance. According to the report published by the United Nations Trade and Development 80% of the 156 countries enacted cybercrime legislation with Europe equating 91% and Africa equating 72% adoption rate. Due to the evolving nature of cyber-attacks, organisations are become increasingly aware of the legal and financial repercussion associated with the regulatory breaches and to avoid such consequences companies are adopting cyber insurance plans leading to boost in the market.

High Operational Cost Associated to Adoption Hinder Market Growth

There exists high implementation cost related to the adoption of cyber insurance due to complexity of network security, sensitivity of data and level of access to data in the company that deters potential clients particularly small and medium-sized enterprises from pursuing coverage.

Integration of Blockchain in Cyber Security Insurance Platforms Creates Opportunities

Integration of blockchain in cybersecurity insurance platforms is anticipated to create significant opportunities in the future. The integration helps tackle cyber security vulnerabilities, provides strong encryption, effectively verifies data ownership and integrity that compliments with enhanced security solutions appealing to broader population for adoption of cyber coverage plans.

Market Segmentations and Scope of the Study 

The cyber liability insurance market report is divided on the basis of service offering, insurance coverage, compliance requirement, insurance type, enterprise size, end-user industry, and region. On the basis of service offering, the market is segmented into solution and services. Based on solution, the market is further grouped into cybersecurity insurance analytics platform, disaster recovery and business continuity, and cyber security solution. The cybersecurity solution is further grouped into cyber risk and vulnerability assessment and cybersecurity resilience. Based on services, the market is further segmented into consulting/advisory, security awareness training, and others.

On the basis of insurance coverage, the market is divided into data breach and cyber liability. Based on data breach, the market is further grouped into data loss, denial of service and down-time, ransomware attacks, and others. Based on cyber liability, the market is further grouped into data protection and privacy costs, non-compliance penalty, brand and related intellectual property protection, and others. On the basis of compliance requirement, the market is divided into healthcare compliance, financial services compliance, GDPR compliance, data privacy compliance, and other compliance.

On the basis of insurance type, the market is grouped into packaged and stand-alone. On the basis of enterprise-size, the market is divided into small and medium enterprise, and large enterprise. On the basis of end-user industry, the market is segmented into insurance companies, third-party administrators, brokers, and consultancies, and government agencies, IT and ITES, healthcare and life science, retail and e-commerce, telecom, travel, tourism, and hospitality, and others. The regional breakdown and analysis of each of the aforesaid segments include regions consisting of North America, Europe, Asia-Pacific, and RoW. 

Geographical Analysis

North America is the dominating region in the cyber liability insurance market share and is projected to continue leading in the future because of the booming AI sector in the region that comes with heightened data breaches, cyber-attacks, and system crashes with the rising use of AI. The report released by the U.S. Bureau of Labor Statistics in 2024 states private investment in artificial intelligence (AI) grew from USD 37.87 billion in 2020 to USD 59.78 billion in 2023 recording a shift of 57.8% within a period of 3 years. The growing usage of AI to breach data prompts companies to seek comprehensive cyber coverage plans to safeguard leading to boost in the market. 

Moreover, the growth in the region is also witnessed due to the presence of major players such as Coalition Inc., American International Group, Inc. and Munich Re Syndicate Limited in the region who are adopting numerous business tactics such as product launches to maintain their dominance in the region. For instance, in May 2024, Coalition Inc. announced the launch of its cyber insurance offering to large enterprise businesses in Canada. The development aims in expanding the customer base of the company further fueling growth in the region.

Asia-Pacific is fastest growing region globally and is expected to dominate the industry in the years to come as a result of increasing threats of cyber-attacks in the region. The Indian Ministry of Electronics and IT stated Cyberattacks on Indian government organizations increased by 138%, from 85,797 in 2019 to 204,844 in 2023. The rising cyber-attacks encourage public and private companies to protect their information from financial losses and data loss, thus driving an increase in the cyber liability insurance market growth.

Additionally, the government regulatory framework that enhance and control cyber threats also drives the market growth as the development of such regulatory framework encourages cyber insurance adoption. For instance, in November 2023, the Australian Government released 2023-2030 Cyber Security Strategy committed to protecting critical infrastructure and resolving cyber challenges. The development of a new regulatory framework encourages businesses to purchase comprehensive cyber insurance policies in order to avoid legal and financial repercussion leading to surge in the market growth.

Competitive Landscape

Various key players operating in the cyber liability insurance industry are Chubb Limited, Beazley Group plc, AXA SA, Hiscox Insurance Company Ltd., American International Group, Inc., Arch Capital Group Ltd., Zurich American Insurance Company, AmTrust Financial Services, Inc., Assicurazioni Generali S.p. A., Munich Re Syndicate Limited, Embroker, Inc., Aon plc, SBI General Insurance Company Limited, Coalition Inc., Philadelphia Consolidated Holding Corp., and others. These companies are adopting various business tactics such as product launches and market expansion to maintain their dominance in the market.

For instance, in October 2024, AXA SA launched cyber insurance coverage to protect the business developing their own GenAI models. The development focuses on expanding company's global cyber insurance portfolio to emerging technological risks. 

Also, in October 2024, Munich Re Syndicate Limited introduced HSB CyberPro, an innovative cyber insurance product for commercial customers. The innovation targets enlarging the firm's product base.

Furthermore, in October 2024, Beazley Group plc announced the creation of combined cyber and financial institutions consortium to provide civil liability, crime, fraud and cyber cover to financial institutions. The development shows expanding product portfolio catering to the financial institutions.

Key Benefits

• The report provides quantitative analysis and estimations of the cyber liability insurance market from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future cyber liability insurance market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the cyber liability insurance industry is provided in the report.

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Cyber Liability Insurance Market Key Segments

By Service Offering

• Solution

  • Cybersecurity Insurance Analytics Platform 

  • Disaster Recovery and Business Continuity 

  • Cybersecurity Solution

    • Cyber Risk and Vulnerability Assessment

    • Cybersecurity Resilience

• Services

  • Consulting/ Advisory 

  • Security Awareness Training 

  • Others 

By Insurance Coverage

• Data Breach

  • Data Loss 

  • Denial of Service and Down-Time 

  • Ransomware Attacks 

  • Others 

• Cyber Liability

  • Type​​​​​​​

    • Data Protection and Privacy Costs 

    • Non-Compliance Penalty

    • Brand and Related Intellectual Property Protection 

    • Others

By Compliance Requirement

• Healthcare Compliance

• Financial Services Compliance

• GDPR Compliance

• Data Privacy Compliance

• Other Compliance

By Insurance Type

• Packaged

• Stand-alone

By Enterprise Size

• Small and Medium Enterprise

• Large Enterprise

By End-User Industry

• Insurance Companies

• Third-Party Administrators, Brokers, and Consultancies

• Government Agencies

• IT and ITES

• Healthcare and Life Science

• Retail and ecommerce

• Telecom

• Travel, Tourism, and Hospitality

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France  

  • Italy  

  • Spain

  • Denmark

  • Netherlands 

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Chubb Limited

• Beazley Group plc

• AXA SA

• Hiscox Insurance Company Ltd.

• American International Group, Inc.

• Arch Capital Group Ltd.

• Zurich American Insurance Company

• AmTrust Financial Services, Inc.

• Assicurazioni Generali S.p. A.

• Munich Re Syndicate Limited

• Embroker, Inc

• Aon plc

• SBI General Insurance Company Limited

• Coalition Inc.

• Philadelphia Consolidated Holding Corp.

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 16.29 Billion
Revenue Forecast in 2030	USD 54.83 Billion
Growth Rate	CAGR of 22.5% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Rising incidence of cyber-attacks promotes growth in the industry. Global cyber regulatory framework spurs growth in the industry. The boosting AI industry drives the market growth
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.