Cybersecurity Insurance Market – Growth, Trends, Impact of COVID-19 and Forecast (2022-2027)
New York, March 18, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Cybersecurity Insurance Market – Growth, Trends, COVID-19 Impact and Forecast (2022 – 2027)” – https://www.reportlinker.com/p06246217/?utm_source=GNW
Advances in computing, communication technologies and the smart energy grid are changing the landscape of critical infrastructure and business networks in all countries. However, with the rapid evolution of technology comes rapidly evolving threats.
Personal data is valuable which makes cyber criminals to commit crime, where personal information will be sold on dark web like credit card number, ID, medical records etc. This is one of the few factors that has led to increased demand for cybersecurity.
Cloud computing is one of the fastest growing recent technologies, breaking down traditional computing boundaries, creating new markets, driving the trend towards mobility, enabling advances in unified communications. Various technology players and organizations are turning to new insurance models to mitigate the risks of storing sensitive data in the modern cybersecurity landscape.
As the cybersecurity insurance space continues to mature, insurers will consider a wider range of security controls and technologies in their assessments. Therefore, an organization’s level of data sensitivity and ability to mask it adequately will play a key role in determining overall risk, leading to increased adoption of new technologies such as microsharding. Microsharding technology splits data into chunks that can be as small as single-digit bytes before polluting and distributing shards in multiple locations to reduce the attack surface and eliminate data sensitivity.
Cyber insurance policies and companies cover a wide range of risks, and insurers don’t always agree on what claims are covered. Cyber events have characteristics that make it difficult to write comprehensive policies, such as limited loss history, unreliability of past data when predicting future events, and the possibility of a large-scale attack with highly correlated losses across companies and sectors. Additionally, insurers are still working on precise and precise criteria for cyberattacks and the impact of new technologies like the Internet of Things. Cyber insurance coverage could be ineffective and expose businesses to considerable damage if large cyber attacks occur without well-defined dangers and an understanding of how they affect insurers.
The pandemic has accelerated the adoption of digital tools, leading to an increased need for cybersecurity insurance coverage. Various companies are eager to combine insurance with cybersecurity tools to help businesses mitigate and manage cyber risks. For example, in 2020, Coalition, a cyber insurance company, acquired BinaryEdge, a platform similar to BitSight and Security Scorecard that searches the internet and maps an organization’s attack surface. Coalition merged terabytes of data from BinaryEdge with claims and other cybersecurity data sources to power its risk assessment process with machine learning and natural language processing.
Additionally, due to the ongoing COVID-19 pandemic, countries around the world have put in place precautionary measures. With schools closed and communities urged to stay home, several organizations have found a way to allow their employees to work from home. This has therefore led to an increase in the adoption of video communication platforms. “Over the past 6-8 months, the registration of new domains on these video communication platforms, including Zoom, has increased rapidly.
Main market trends
The BFSI segment is estimated to hold a major share of the revenue of the market studied
The BFSI industry is one of the critical infrastructure segments facing multiple data breaches and cyberattacks, due to the huge customer base the sector serves and the financial information at stake. Cybercriminals leverage a myriad of diabolical cyberattacks to immobilize the financial sector since it is a very lucrative operating model with incredible profits and the benefit of relatively low risk and detectability. Trojans, ATMs, ransomware, mobile banking, data breaches, institutional invasion, data theft, tax breaches and other threats are all part of the threat environment of these attacks.
Cybersecurity insurance is increasingly becoming an essential part of banking and financial institutions. The industry is expected to take a major share of the global market over the forecast period. It is one of the highly regulated and governed industries, and it is also prone to identity theft which increases the demand.
For example, in October 2021, the Federal Trade Commission issued an amended rule that increases the data security precautions that financial institutions must implement to secure their customers’ financial data. In recent years, consumers have suffered tremendous suffering due to massive data breaches and cyberattacks, including monetary loss, identity theft, and other forms of financial misery. The Federal Trade Commission’s revised safeguard rule requires non-bank financial companies, such as mortgage brokers, car dealerships and payday lenders, to establish, implement and maintain a robust security system to protect information of their customers. Government policies will significantly boost the market.
With the increase in security breaches, banks and financial institutes should adopt cybersecurity insurance to protect their customers’ data and prevent economic losses. For example, in December 2021, a massive security breach at Bitmart, a crypto trading platform, led hackers to remove approximately $200 million in assets. A stolen private key was the main source of the security compromise, which affected two of its Ethereum and Binance smart wallets.
Additionally, in October 2021, SharkBot is a new Android banking Trojan discovered by researchers from Cleafy and Threat Fabric. The virus tricks victims into downloading malicious apps from Google Play Store. It then gains administrative privileges, logs keystrokes, intercepts/hides F2A SMS communications, and accesses mobile banking and cryptocurrency apps to transfer funds. SharkBot targeted five different cryptocurrency providers and international banks from the UK and Italy.
The United States holds most of the North American region
The United States is considered the most important market for cybersecurity insurance across the world. The country is also home to a significant number of key players operating in the market, which is another reason for the high share of the country.
In 2021, there were more reported data breaches in the country than in any year since the first state data breach notification law took effect in 2003.
The region has witnessed a significant number of data breaches over the years. According to the report published in 2022 by Identity Theft Resource Center, 1,789 data breach incidents were recorded. The high number of data breaches is encouraging organizations across various industries to opt for cybersecurity insurance, which is driving the growth of the market.
Moreover, cyber attacks in the country are increasing rapidly and have reached an all-time high, basically due to the drastic increase in the number of connected devices in the region. Consumers in the region use public clouds and many of their mobile apps are already loaded with their personal information for the convenience of shopping, banking and communications, among others. Additionally, according to the White House Council of Economic Advisers, the United States economy loses an estimated $57 billion to $109 billion each year due to harmful cyber activities.
T-Mobile, a mobile telecommunications company in the United States, has acknowledged six data breaches since 2018, including two in the last six months of 2021. In August 2021, the company announced that its systems had been attacked via a unprotected network access device in July. In August, the attacker gained direct access to servers containing account and personal information about former, current and potential account holders. Additionally, the company confirmed an additional compromise in late December 2021 that impacted an undisclosed number of customers.
Cybersecurity insurance is moderately consolidated, with major players offering superior technology and driving growth through their existing distribution channels. These technology leaders invest in innovation, mergers, acquisitions and partnering activities to maintain a competitive advantage in the market.
August 2021 – With cases of ransomware attacks on the rise, AON and Crawford have pooled their combined cyber experience and produced a step-by-step guide to help organizations better mitigate cyber risk and more effectively manage security claims. accident insurance. The guide examines how advances in cyberattacks, particularly ransomware, are rapidly inflating the frequency and severity of losses while simultaneously increasing the complexity of managing the impact of business interruptions.
May 2021 – Japanese insurance company Mitsui has invested $36 million and entered into a strategic partnership with Israeli company Upstream Security as part of the startup’s Round C funding. The partnership would allow the Japanese insurer to use Upstream’s machine learning and analytics capabilities to derive insurance insights from mobility data. MSI and Upstream will work together to put the power and benefits of automotive telematics data into the hands of Japanese insurers and policyholders.
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