Mandatory Cyber Security Legislation to Drive Cyber Insurance Market

The cyber insurance market is progressing due to the increasing criminalization of the internet, significant cyber-attack risk to the supply chain, and strict regulations regarding cyber security. The market valued at $3,416.4 million in 2016, and it is projected to grow at an over 20.0% CAGR during the forecast period (2017–2023). Cyber insurance helps minimize the damage caused by internet-based risks, generally relating to the information technology (IT) infrastructure and activities. Cyber insurance policies include first-party coverage against extortion, denial of service (DoS) attacks, data destruction, theft, and hacking.

DoS attacks, which attempt to deter legitimate users from accessing the information system, are trending in the cyber insurance market.  The major purpose of these attacks is to disrupt the revenue generation channel. They have impacted many big and small businesses, such as Dyn, a service provider, which was impacted by the distributed denial of service (DDoS) attack in October 2016. It affected renowned websites, including those of The New York Times, Twitter, Spotify, Netflix, and Airbnb. By understanding the latest trends in DoS attacks and monitoring the threats, cyber insurance providers are safeguarding businesses. 

The key factor driving the cyber insurance market is the implementation of mandatory legislations regarding cyber security. With the increasing volumes of offline and online data, data privacy and protection are becoming a cause for worry in emerging economies. While the European Union is planning to come up with pan-European data protection rules and regulations, countries such as Australia, Singapore, and the U.S. have already implemented stronger legislations. To survive in the cyber-risk prone environment, cyber insurance is becoming imperative for businesses.

The segments of the cyber insurance market are industry vertical, enterprise size, region, and service. Based on region, the categories are Europe, Americas, and rest of the world. In 2016, more than 90.0% of the revenue in the market was generated by the Americas, which are expected to be the largest market during the forecast period too. Asia-Pacific is witnessing a surge in the demand for effective cyber insurance due to the increasing number of cyber-attacks in Japan and China.

Read Press Release on cyber insurance Market At : https://www.psmarketresearch.com/press-release/cyber-insurance-market

The cyber insurance market, based on enterprise size, is subdivided into large and small and medium enterprises (SME). Due to sufficient funds and high purchasing power of large enterprises, they led the market throughout the historical period (2013–2016). SMEs hesitate in buying cyber insurance due to the generally high premiums of such policies. This is also why large enterprises will still be the bigger market for cyber insurance during the forecast period.

Therefore, the market is expected to progress owing to the increasing risk to enterprises from cyber-attacks.

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