The global cybersecurity insurance market is expected to expand at a compound annual growth rate (CAGR) of 14.2% from USD 16.54 billion in 2025 to USD 32.19 billion by 2030. As a result of an increase in ransomware and data breaches, the market for cybersecurity insurance is being driven by businesses looking to save money. Cyber insurance is becoming a necessary compliance instrument for enterprises due to regulatory demands like GDPR, NIS2, and national cybersecurity obligations. The attack surface has grown dramatically as a result of the growing usage of cloud, IoT, and remote work, which has accelerated digital transformation and increased vulnerability to cyber threats.
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Based on insurance type, the packaged segment is expected to grow at the highest CAGR during the forecast period.
With a surge in digitalization and the adoption of the latest innovative technologies, the need for packaged cybersecurity insurance solutions has accelerated. The packaged or endorsed cybersecurity insurance policy provides cybersecurity insurance coverage as part of a package with a traditional insurance policy. Traditional insurance policy lines include property, directors and officers, professional indemnity/errors and omissions, general liability, crime, policies for SMEs, or homeowner policies. Cyber incident coverages are packaged with these traditional insurance covers. The packaged cyber coverage covers non-cyber losses, such as cyber coverage endorsement and costs associated with tangible property. The major insurance companies that offer packaged cybersecurity insurance policies are Chubb, CNA, AXIS Capital, Travelers Insurance, and Liberty Mutual.
Based on provider type, the insurance provider segment is expected to hold the largest market share during the forecast period.
Insurance companies increasingly rely on technology providers for risk management services and security posture assessment. BitSight, RedSeal, Prevalent, SecurityScorecard, UpGuard, SafeBreach, AttackIQ, and Ivanti are some of the prominent vendors that provide their security solutions and services to insurance enterprises. Insurance providers serve as critical end users in the cybersecurity insurance due to their reliance on digital infrastructure, customer data, and financial transactions. They utilize cybersecurity insurance to protect against potential financial losses resulting from cyberattacks such as data breaches, ransomware, and business interruptions. This insurance enables them to ensure regulatory compliance with data protection laws such as GDPR and NAIC’s Insurance Data Security Model Law. Additionally, cyber policies offer insurers access to incident response teams, legal counsel, and PR experts to manage breach events efficiently. Insurance providers also leverage these policies to strengthen operational resilience, manage third-party risks, and secure digital products and services.
Based on region, Asia Pacific is expected to grow at the highest CAGR during the forecast period.
Asia Pacific is expected to witness the highest CAGR in the cybersecurity insurance market during the forecast period, driven by the escalating cyber threat landscape. Recognized for its dynamic and emerging economies, the region is experiencing substantial growth in the cybersecurity insurance sector, supported by progressive government regulations and advancements in technology. APAC is rapidly embracing technologies such as business intelligence (BI) tools, cloud computing, data analytics, and infrastructure modernization. The implementation of stricter regulatory frameworks, including heightened penalties for non-compliance, is anticipated to drive increased demand for cybersecurity insurance across Asia Pacific. Zurich Insurance forecasts robust market growth in the region, with key players such as AIG, Allianz, Chubb, and Zurich playing a leading role in shaping the market landscape.
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Unique Features in the Cybersecurity Insurance Market
One of the standout features of the cybersecurity insurance market is the increasingly tailored risk assessment and underwriting processes. Insurers now leverage advanced data analytics, threat intelligence, and cyber risk scoring to evaluate an organization’s specific threat exposure. This personalization enables insurers to provide bespoke policies that align with the unique security posture and risk profile of each client, moving beyond one-size-fits-all coverage.
Cyber insurance policies are evolving to become more flexible and dynamic, addressing the constantly shifting landscape of cyber threats. Insurers are increasingly offering modular coverage options that can be adapted to include ransomware, data breach liabilities, business interruption, and regulatory penalties. These adaptive models ensure businesses remain protected as their threat environment changes, especially in the face of emerging risks like deepfakes and supply chain attacks.
Modern cybersecurity insurance goes beyond financial compensation by incorporating value-added services such as pre-breach risk assessments, employee training, and incident response planning. Post-breach support typically includes forensic investigation, legal consulting, public relations assistance, and identity theft remediation. This holistic approach not only mitigates losses but also helps improve the overall cyber resilience of policyholders.
A unique feature of this market is the integration of insurance offerings with cybersecurity technologies. Some insurers now partner with security vendors to bundle policies with cybersecurity tools, such as endpoint protection, vulnerability scanning, and managed detection and response (MDR) services. This creates a proactive security posture while reducing potential claims, aligning the interests of both insurer and insured.
Major Highlights of the Cybersecurity Insurance Market
The rapid increase in frequency and sophistication of cyberattacks—such as ransomware, phishing, and data breaches—has significantly boosted demand for cybersecurity insurance. Organizations across industries are recognizing insurance as a critical layer of defense to manage the financial risks associated with cyber incidents, especially as threats target both SMEs and large enterprises alike.
The cybersecurity insurance market has witnessed a broadening of policy coverages to address evolving threats. Traditional policies covering data breaches and liability are now being expanded to include newer risks such as cloud service failures, supply chain disruptions, and digital asset theft. This expansion reflects the industry’s efforts to stay relevant amid the complex cybersecurity landscape.
Regulatory bodies around the world are increasing pressure on organizations to adopt stringent cybersecurity and data protection measures. This has led many companies to turn to cyber insurance as a way to manage compliance costs and avoid penalties. Insurers, in turn, are offering specialized policies that address regulatory liabilities and provide legal support in the event of non-compliance.
As cyber risks grow in severity and cost, insurance providers have responded by tightening underwriting standards and increasing premiums. Insurers now require detailed information on a company’s cybersecurity posture before offering coverage, including technical safeguards, incident response plans, and third-party risk management. This shift reflects the need to mitigate high claims ratios in recent years.
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Top Companies in the Cybersecurity Insurance Market
The major vendors in the cybersecurity insurance market are BitSight, Mitratech, RedSeal, SecurityScorecard, UpGuard, Chubb, AXA AL, Travelers, AIG, and Beazley.
BitSight
BitSight is a leading cybersecurity risk ratings and analytics company headquartered in Boston, Massachusetts. Founded in 2011, BitSight pioneered the concept of security ratings, offering organizations a data-driven, external view of their cybersecurity posture similar to a credit score, with ratings ranging from 250 to 900. Its platform continuously analyzes massive volumes of global threat intelligence over 400 billion events daily to assess risk indicators such as botnet activity, malware infections, misconfigurations, and third-party vulnerabilities. Serving over 3,300 customers across 70+ countries, including Fortune 500 companies, top investment banks, and government agencies, BitSight supports use cases in third-party risk management, cyber insurance, regulatory compliance, and security performance monitoring. The company is backed by major investors, and BitSight has expanded its capabilities through acquisitions such as Cybersixgill. Recognized as a market leader, BitSight plays a crucial role in quantifying cyber risk and enabling informed decision-making across the enterprise ecosystem.
Mitratech
Mitratech is a leading global provider of enterprise legal management, risk and compliance, and human resources compliance software. Headquartered in Austin, Texas, the company serves over 20,000 organizations across over 160 countries, including nearly one-third of the Fortune 500. Mitratech’s platform integrates AI-powered tools to streamline legal operations, manage risk and policy, and support HR compliance. The company is recognized for delivering significant ROI through automation, centralized compliance management, and a customer-first approach across heavily regulated industries. Mitratech plays a strategic role in the cybersecurity insurance market by offering advanced third-party risk management and compliance solutions that align with insurers’ evolving requirements. Through platforms such as Prevalent and integrations with tools such as Black Kite, Mitratech enables continuous cyber risk monitoring, quantifies cyber threats in financial terms, and supports regulatory compliance across frameworks such as NIST and ISO 27001. These capabilities help insurers enhance underwriting precision, support risk-based pricing, and streamline claims validation. As cybersecurity insurance grows rapidly, driven by increasing regulatory pressure and rising breach costs, Mitratech’s solutions empower both carriers and policyholders to proactively manage cyber exposure and meet insurer prerequisites, making it a vital enabler in the cyber insurance ecosystem.
RedSeal
RedSeal supports the cybersecurity insurance market by providing advanced network modeling, continuous risk scoring, and cyber risk quantification. Its platform helps organizations and insurers visualize complex network environments, identify security gaps, and evaluate overall cyber resilience. By offering insights into security posture and compliance readiness, RedSeal enables insurers to make informed underwriting decisions and supports policyholders in reducing premiums through proactive risk mitigation.
SecurityScorecard
SecurityScorecard plays a key role in the cybersecurity insurance ecosystem with its industry-leading security ratings platform. It evaluates organizations across multiple risk factors—such as network security, DNS health, patching cadence, and endpoint security—providing insurers with objective, real-time assessments of cyber risk. These insights help insurers assess policyholder risk, streamline underwriting processes, and encourage continuous security improvements through score-driven incentives.
UpGuard
UpGuard enhances cyber insurance underwriting and risk management through its third-party risk and attack surface monitoring solutions. The platform offers continuous visibility into vulnerabilities across internal and vendor ecosystems, enabling insurers and insured entities to identify weak points that may lead to breaches. By improving risk transparency and supporting regulatory compliance, UpGuard helps insurers assess exposure more accurately and drives proactive security measures among policyholders.
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