Cyber Insurance Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 26.32 Bn

Forecast Year, 2035

USD 288.42 Bn

CAGR, 2026 - 2035

27.05%

Report Coverage

Global

What is the Cyber Insurance Market Size in 2026?

The global cyber insurance market size was calculated at USD 26.32 billion in 2025 and is predicted to increase from USD 33.44 billion in 2026 to approximately USD 288.42 billion by 2035, expanding at a CAGR of 27.05% from 2026 to 2035.These factors lead to the development of a growing cyber insurance sector driven by an increase in cyber threats, a need to be compliant with regulations, the ongoing projects of digital transformation, and an increased understanding of vulnerability/risk. Organizations are increasingly looking for comprehensive insurance solutions with the advent of more cyber incident cases, ensuring the mitigation of financial impacts and managing risks associated with cyberattacks like data breaches or ransomware attacks.

Key Takeaways

• By region, North America dominated the cyber insurance market with a market share of 36.4% in 2025.
• By region, Asia-Pacific is fastest growing region in the cyber insurance market in the forecast period.
• By insurance type, the standalone cyber insurance segment dominated in the cyber insurance market with 58.6% market share in 2025.
• By insurance type, the packaged or endorsed segment is growing at a rapid pace during the forecast period.
• By coverage type, the first-party coverage segment is dominant with a market share of 54.0% in 2026.
• By coverage type, the liability/third-party coverage segment is expected to record the highest CAGR during the forecast period
• By organization size, large enterprises held dominance over policyholders with 54.0% of the market share in 2025.
• By organization size, the SMEs segment is growing rapidly with a CAGR of 29% or more in the forecast period of 2026 to 2035.
• By end-user, the BFSI segment dominated the market with the largest market share, approximately 32.0% in 2025.
• By end-user, the healthcare segment is growing rapidly with a CAGR of approximately 30% or more in the forecast period.

What is the Cyber Insurance Market?

An insurance policy that covers the insurance of businesses as well as individuals to protect them against possible breaches that may happen due to the security threats that could occur when there is an internet attack. The increasing number of companies understood that these threats need to be protected against. This insurance insulates the company from the costs associated with data breaches, cyber-attacks, ransomware incidents, and all types of cybercrime by protecting them against the cost of expenses. The cyber insurance policy protects against different risks like loss of data, legal fees, and interruption of business, thus cyber insurance acts as a cyber disaster recovery of company for the interruption of business and also any legal fees and all other things you may need at law.

They continue to be a cornerstone of contemporary risk management. The development of a more flexible regulatory environment that focuses on data protection and privacy, among other things, would impact the cyber insurance sector as well. Regulators would increasingly regulate the kinds of data management enterprises engage in. And when they break that rule, they'll face hefty fines and reputational damage. Cyber insurance allows organizations to address these barriers by offering insurance covering penalties and legal obligations, which may have been imposed under applicable regulations. Since the regulatory era brought in new methods of compliance under new laws and regulations, cyber insurance has become an integral part of a company's risk management strategy.

Impact of AI in the Cyber Insurance Market

Artificial Intelligence (AI) technologies have evolved rapidly and pose a novel set of cyber threats that can affect the existing cyber insurance policies. Due to the increasing complexity and variability of these technologies, the insurance community is increasingly faced with complex and unpredictable liabilities. Cyber insurance products of some of the largest insurers have started to put limitations on the AI risks. This shift highlights a growing concern over new risks, including AI hallucinations, algorithmic bias, failures in data integrity, and the erratic behavior of autonomous or agentic AI systems.

Current cyber coverage was not designed to address these issues, and it often fails to distinguish between operational troubles, professional negligence, and technological failures. As a result, a growing number of insurers are blaming such losses on the shoulders of errors and omissions (E&O) policies, considering that claims in the future could balloon into billions should AI accidents cause enormous market or reputational damage.

Market Trends of the Cyber Insurance Market

• Rising Adoption of Crypto Insurance Service: Every day, cryptocurrencies are owned globally. With the rising ownership of crypto comes its related concerns. Facing such rising attacks as a consequence of these emerging risks, companies are investing in insurance policies to protect themselves against the same. Cybersecurity insurance now also incorporates coverage that comprises custodial theft, vulnerabilities in smart contracts, and downtimes of exchanges as evidence of blockchain in its security risk management.
• Cybersecurity Services Integrated with Insurance Policies: The intersection of cyber protection services with insurance companies creates a closed loop wherein security telemetry data with real-time security parameters is used to dynamically adjust the premium structure based on security risks posed by policy recipients in terms of real-world risk. Insurers provide insurance coverage packages with different services, including vulnerability assessments, threat intelligence feeds, alert security teams, and incident response retainers (IRTRs), included directly into their policies.
• Custom Policies to Meet the Needs and Regulations of Different Sectors: There are specific challenges and consequences of breaches faced by operators operating across all areas of value, including healthcare, fintech, and critical infrastructure. Insurers are crafting customized cyber liability regimes that respond specifically to these sector-specific requirements, incorporating regulatory fines, forensic fees, and costs of reputational rehabilitation. This development is a step toward a specific underwriting strategy rather than blanket cyber protections.
• Intelligent Solutions for SMEs:Small and medium-sized businesses have quickly developed into the largest market segment of the cyber protection sector. In light of this increase, insurers are redesigning their policy with simplified underwriting processes, accelerated digital onboarding processes, and modular coverage plans with adjustments based on revenue size and the maturity of the cyber domain. This development is an indication that SMEs often do not have strong in-house cyber capabilities and consequently require actionable risk transfer solutions (instead of complex enterprise-level contracts).

Market Scope

Segment Insights

Insurance Type Insights

Standalone Cyber Insurance

The standalone cyber insurance segment dominated the cyber insurance market with 58.6% market share in 2025, as it is preferred for its comprehensive, dedicated limits specifically for cyber risk. Meanwhile, property-and-casualty riders fail to provide adequate coverage for ransomware attacks, cloud outages, or social engineering scenarios. Standalone policies allow insurers to employ fine-grained scanning data and flexible endorsements, yielding very fast rates of several hours per claim by means of algorithmic underwriting technology.

Packaged/Endorsed (Add-on to General Liability)

The packaged or endorsed segment is growing at the fastest rate during the forecast period. This makes this strategy most appropriate for organizations experiencing a variety of risks, and it adds multiple tiers of protection to businesses. Standalone wording's inherent flexibility, though, also allows coverage to incorporate newly created add-ons to general liability, such as cryptojacking protection and reimbursement for voluntary shutdowns.

Coverage Type Insights

First-party Coverage (Breach Response, Ransom)

The first-party coverage segment dominated with a market share of 54.0% in 2025. This type of insurance deals with scenarios in which the impacted parties are directly linked to the incident. It also helps companies in combating data breaches and cyberattacks. This segment is expected to grow as online theft, hacks, extortion activity, and data destruction continue to rise.

Liability / Third-party Coverage

The liability/third-party coverage segment is expected to record the highest CAGR during the forecast period due to increased litigation and regulatory fines following mass data breaches. As a function of risk management, such liability insurance is in high demand. This type of coverage is tailored to the exact nature of a kind for which businesses have their own requirements, offering benefits ranging from payment to offset losses arising from business interruptions, protection against data breaches, forensic assistance at defending against cyber extortion, and additional coverage above the typical liability policy. Consequently, the businesses handling sensitive client data are increasingly getting third-party coverage.

Organization Size Insights

Large Enterprises

Large enterprises hold dominance over policyholders with 54.0% of the market share in 2025. Their extensive digital infrastructure, use of multi-cloud systems, and worldwide data operations have made them highly susceptible to intricate cyber threats. Such companies generally acquire tailored policies with substantial limits that include provisions for incident response retainers and clauses addressing systemic risks. Moreover, the governance of the board and the demands from shareholders drive sustained investment in strong cyber liability frameworks.

Small & Medium Enterprises (SMEs)

The SMEs segment is growing rapidly in the cyber insurance market in the forecast period of 2026 to 2035. SMEs experience massive growth as insurers pivot to offer SME-friendly automated underwriting.

End-User Industry Insights

BFSI (Banking & Finance)

The BFSI segment dominated the market with the largest market share, approximately 32.0% in 2025. This dominance is driven by the significant value of financial data, the development of digital banking, and fraud and phishing attacks that are still ongoing threats. In this new landscape, financial institutions have a high demand for compliance with strict compliance regulations and risk to reputations, which has led to a surge in the number of acquisitions of cyber insurance products. As a result of the huge economic ramifications of security violations, the banks and fintech firms are concentrating on establishing full first- and third-party coverage to ensure operationalresilience.

Healthcare

The healthcare segment is growing rapidly in the cyber insurance market with a CAGR of approximately 30% or more in the forecast period, driven by the high “black market” value of medical records and rising ransomware targeting hospitals. Ransomware incidents targeting clinical systems have risen in number, increasing operational risks. With the rising prevalence of electronic health records and interconnected medical devices at the same time, insurers are drafting bespoke policies to protect against data breaches, extortion cases, and fines from regulators for ransomware attacks.

Regional Insights

North America Cyber Insurance Market Size and Growth 2026 to 2035

The North America cyber insurance market size is estimated at USD 9.58 billion in 2025 and is projected to reach approximately USD 106.53 billion by 2035, with a cyber insurance 27.22% CAGR from 2026 to 2035.

North America Cyber Insurance Market Trends

North America dominated the cyber insurance market with a market share of 36.4% in 2025. The U.S. remains the world's most mature market due to strict breach-notification laws and the highest volume of high-value cyber litigation. The booming presence of cyber insurance in industries such as banking, healthcare, and technology sectors with substantial digital infrastructure is playing a big role. A growing volume of ransomware incidents and stronger reporting requirements, as well as the prevalence of strong reporting requirements and strong influence from the industry's best vendors, are adding to the demand for coverage.

U.S. Cyber Insurance Market Size and Growth 2026 to 2035

The U.S. cyber insurance market size is calculated at USD 7.19 billion in 2025 and is expected to reach nearly USD 80.35 billion in 2035, accelerating at a strong CAGR of 27.30% between 2026 and 2035.

U.S. Cyber Insurance Market Trends:

American companies now account for a major share of the U.S. cyber insurance market, and businesses play a key role in its trajectory as this sector expands rapidly. Different types or sizes of business entities are forming market segments in applications, including insurance companies, banks, and health care providers. Although the overall market may be soft, rising ransomware threats make it necessary for companies to adopt comprehensive practices in their cybersecurity program. Increased risks and legal mandates are powering the development of the U.S. cyber insurance market.

Asia Pacific Cyber Insurance Market Trends:

Asia Pacific is fastest growing region in the cyber insurance market in the forecast period. The increase in premium growth is on an upward trend, spurred by higher literacy in society and the introduction of new regulations. In particular, demand for cyber insurance is growing in the space of digital transformation, and this happens especially for SMEs and critical infrastructure players. Insurance products and services to limit the negative impact of cybercrime are emerging as investments developed by Japan, India, South Korea, and China.

India Cyber Insurance Market Trends:

India is expected to be the fastest-growing cyber insurance market in the Asia Pacific. High online penetration among SMEs, growth in fintech services, and the increase in ransomware cases are fueling demand for cover. What is more, the implementation of the Digital Personal Data Protection Act has promoted the compliance-based implementation of cyber insurance products. Insurers such as Tata AIG General Insurance Company Limited are diversifying their portfolio of solutions, addressing demand for cybersecurity specifically to satisfy this accelerating business.

Cyber Insurance Market Companies

• Chubb (Switzerland/USA)
• Travelers Companies, Inc. (USA)
• Zurich Insurance Group (Switzerland)
• AIG (American International Group) (USA)
• Beazley Group (UK)
• Munich Re (Germany)
• AXA XL (France)
• Allianz SE (Germany)
• Berkshire Hathaway Inc. (USA)
• Tokio Marine Holdings (Japan)
• CNA Financial Corporation (USA)
• Hiscox Ltd. (Bermuda/UK)
• Lloyd's of London (UK)
• Liberty Mutual Insurance (USA)
• Arch Capital Group (Bermuda)

Segments Covered in the Report

By Insurance Type

• Standalone Cyber Insurance
• Packaged/Endorsed (Add-on to General Liability)

By Coverage Type

• First-party Coverage (Breach Response, Ransom)
• Liability / Third-party Coverage

By Organization Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By End-User Industry

• BFSI (Banking & Finance)
• Retail & E-commerce
• IT & Telecom
• Healthcare

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa