Rising Data Breaches Propel Cyber Insurance Market Toward USD 65.2 Billion by 2032

According to the latest market research study published by P&S Intelligence, the global cyber insurance market reached an estimated USD 16.1 billion in 2024, and is projected to expand at a strong compound annual growth rate (CAGR) of 19.3% between 2025 and 2032, reaching USD 65.2 billion by 2032. This surge is driven by a sharp increase in cyberattacks — including virus, malware, and other IT-network threats — coupled with expanding legislation around cybersecurity that mandates stronger data protection. As companies increasingly recognise the financial and reputational risks tied to cyber intrusions, cyber insurance has emerged as a vital risk-mitigation strategy, offering protection beyond conventional insurance packages.

As digitalisation accelerates worldwide, businesses — especially small and medium-sized enterprises (SMEs) — face mounting regulatory pressures and rising incident rates. That makes cyber insurance not just a security measure, but a strategic necessity. With insurers responding by offering broader coverage and tailored policies, the market is well positioned for substantial growth well into the early 2030s.

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Key Insights

• The policy segment analysis shows that data breach is the largest and fastest-growing category in 2024, capturing 55% of the market — reflecting rising risks around cloud computing, workforce mobility, and expansive data storage across enterprises.
• Other covered policy types include identity theft, malware attacks, phishing, email spoofing, and other cyber threats, underscoring the broad spectrum of risks businesses face.
• By product type, standalone policies dominated in 2024. These comprehensive plans cover first- and third-party losses, such as IT forensics, data restoration, legal liability, cyber extortion (including ransom payments), and reputational damage.
• During the forecast period, integrated policies are expected to grow fastest (projected ~ 20% growth), driven largely by demand from SMEs seeking coverage for data breach losses, business interruption, information restoration, and cyber-extortion remediation. 
• By end-user industry, Banking, Financial Services and Insurance (BFSI) remained the largest sector in 2024, accounting for 40% of revenues, reflecting the high degree of digitization and sensitivity of financial data in this sector. 
• The healthcare sector is projected to witness the fastest growth during the forecast period, due to increasing digitalization, higher volume of sensitive health records, and escalating cyber threats targeting patient health information (PHI).
• In terms of enterprise size, large enterprises currently account for the majority of cyber insurance adoption, given their substantial data assets and risk exposure. Meanwhile, SMEs are poised for the fastest growth (forecasted ~ 21% CAGR), as rising cyberattacks on smaller firms prompt them to seek cost-effective protection.
• Regarding services, the core “insurance” offering remains the dominant share, but claims services are expected to grow fastest (projected 22% CAGR), driven by increasing demand for payout and remediation support following cyber incidents.
• Regionally, North America held the largest market share in 2024, leveraging advanced digital infrastructure, stringent regulatory frameworks, and high cyber-attack incidence. Conversely, the Asia-Pacific (APAC) region is set to record the fastest growth through 2032, fueled by increasing cloud adoption, emerging digital economies, rising cyber vulnerabilities, and growing awareness around data protection — creating significant opportunities for market expansion.
• The overall market remains fragmented, offering openings for many players to capture niche segments by delivering tailored coverage plans that align with varied regulatory standards and industry-specific risk profiles globally.
• The competitive landscape includes global insurance heavyweights and diversified risk carriers, with many firms expanding their cyber insurance offerings to meet rising demand amid intensifying cyber-risk exposure.