The study underscores how insuring against the impact of hacking attacks has become a major financial services sector in its own right.

The global cyber insurance market size is estimated to surge by $42.81 billion from 2022 to 2027, according to Technavio Research, clocking up a compound annual growth rate of 35.92 per cent.

The rise underscores how protecting against hackers continues to be a major budget consideration for financial services, among others.

North America will account for 57 per cent of the market growth during the forecast period, the report said. 

Growth is being driven by increasing awareness of cyber insurance among individuals and businesses. Also, factors such as the high adoption of technologies, the rise in online transactions, and the growth in the e-commerce industry are positively influencing the cyber insurance market in North America. 

The report is entitled Global Cyber Insurance Market 2023-2027.

Challenges
The lack of standardisation is identified as one of the major challenges affecting the growth of the market. Cyber insurance policy coverage can have certain exclusions and limitations that are not clearly stated, the study said. This creates gaps in insurance coverage, which makes end users vulnerable to financial losses. Also, the lack of standardisation makes it difficult for insurance companies to properly assess risks associated with certain policies and determine the appropriate coverage levels. 

The study covered cybersecurity insurance vendors such as Aon, AXA Group, At-Bay, Beazley, Hanover Insurance Group/Zurich Insurance Co, and Chubb. (This news service recently interviewed Chubb about its strategy for the HNW individual and wealth management space.)