The cybersecurity insurance market is expected to reach USD 27.83 billion by 2026 as it was valued at USD 7.36 billion in 2020
Cybersecurity insurance is a contract that an individual or entity can purchase to help reduce the financial risks associated with doing business online. In exchange for a monthly or quarterly fee, the insurance policy transfers some of the risk to the insurer.
In May 2020 – Coalition, the leading cyber insurance, and security company in the US are expanding its offering to Canada-based companies, providing proactive cybersecurity products and services and best-in-class cyber and technology error & omissions insurance to help keep businesses safe.
The coalition will offer up to CAD 20 million of comprehensive insurance coverage supported by the financial strength of Swiss Re (A.M. Best A+) to companies with up to CAD 1 billion in annual revenue.
In September 2019 – AXA XL and Accenture have partnered to offer global cyber-security expertise to AXA XLs underwriters, brokers, and clients to strengthen their cyber capabilities and recover from cyber-attacks.
The increasing digitalization adoption, such as the cloud, Big Data, mobile technologies, IoT, and artificial intelligence (AI), in ever more areas of business and society, and the growing connectivity have increased the workload of already strained IT teams.
Cases of unauthorized stealing or accessing sensitive business data, such as intellectual properties, employees personal information, or even financial records, have been rising, which, in turn, is driving the cybersecurity insurance market.
However, cyber Insurance helps in guarding businesses against the potential effects of cyber-attacks. It helps an organization mitigate risk exposure by offsetting costs after a cyber-attack/breach has happened.
To simplify, cyber Insurance is designed to cover the fees, expenses and legal costs associated with cyber breaches that occur after an organization has been hacked or from theft or loss of client/employee information.