The global cybersecurity revenue in the insurance sector was $6.4 billion in 2020. The market is expected to grow at a CAGR of more than 10% from 2020 to 2025. The sector’s rapid digital transformation will drive this growth.
COVID-19 led to more customers accessing their accounts digitally and insurers selling through digital channels, increasing the sector’s cyber risk. The rise in complex ransomware attacks, the persistence of hybrid working models, ongoing supply chain threats, and the Russia-Ukraine war have all accelerated the need for robust cybersecurity defenses across sectors.
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What is the impact of cybersecurity on the insurance market?
Today’s insurance customers, many of whom are members of Generation Z, are accustomed to accessing their insurers via digital channels. This increases the surface area for cyberattacks, similar to the digitalization necessitated by the COVID-19 pandemic. The increased risk of a cyberattack, and payout for a cyber insurance policyholder, discourage insurers from offering cyber policies. Moreover, the economic damage of the pandemic and the ongoing cost of living crisis have further reduced businesses’ and consumers’ abilities to afford ever-costlier cyber insurance cover.
The COVID-19 pandemic has hastened the digital transformation of businesses, necessitating more employees to work remotely and more transactions to be conducted online. With more customers accessing their accounts digitally and insurers selling through digital channels more than before, the cyber risk faced by insurers is increasing. This is particularly relevant to traditional insurers, which tend to have less digital experience and expertise than insurtechs.
Digital challengers to the insurance industry were initially notably present in personal lines, with other areas of insurance remaining unaffected. This has now changed, and most insurance products have been impacted by emerging challengers that have accelerated digital transformation in the sector. This rapid digital transformation, however, risks holes being left in application development. As well as protecting their reputations and avoiding hefty fines, insurers should invest in cybersecurity solutions to prevent data breaches.
What are the key cybersecurity value chains?
The key cybersecurity value chains can be divided into three segments: hardware, software, and services.
With chips now being used in mission-critical servers and safety-critical applications, protecting chips from cyberattacks is becoming more critical and more expensive. Systems vendors such as Apple and Amazon are increasingly designing their chips rather than buying commercially developed devices and intellectual property (IP) created by third-party developers.
The software element of the cybersecurity value chain comprises the following areas: identity management, network security, endpoint security, threat detection & response, cloud security, data security, email security, application security, unified threat management, and vulnerability management.
The services element of the cybersecurity value chain comprises the following areas: managed security services, post-breach response services, and risk & compliance services. Services are typically outsourced because of the complexity of addressing cybersecurity-related issues, such as staying on top of vulnerabilities, identifying & responding to threats, and meeting compliance requirements.
Which are the leading insurance companies that are deploying cybersecurity?
The leading insurance companies that are deploying cybersecurity are AIG, Allianz, Aon, Chubb, Hiscox, Marsh, Munich Re, Ping An, Swiss Re, and Zurich Insurance.
Which are the specialist cybersecurity vendors in the insurance market?
The specialist cybersecurity vendors in the insurance market are Blackberry, CyberCube, FireEye, Portnox, and SecurityScorecard.
Market Report Overview
|Market size (Year – 2020)||$6.4 billion|
|Key value chains||Hardware, Software, and Services|
|Leading insurance companies||AIG, Allianz, Aon, Chubb, Hiscox, Marsh, Munich Re, Ping An, Swiss Re, and Zurich Insurance|
|Specialist cybersecurity vendors||Blackberry, CyberCube, FireEye, Portnox, and SecurityScorecard|
- With increased digitalization, all insurance firms must now prioritize cybersecurity.
- COVID-19 has forced firms to digitalize at a fast pace, leaving more surface area open for cyberattacks.
- In 2019 global security revenues in the insurance industry were $5bn. By 2024 this figure will reach $6.4bn.
Reasons to Buy
- Position yourself for success by understanding how cybersecurity – one of the biggest themes of the decade – should be deployed within the insurance sector to mitigate the challenges of rapid digitalization.
- Source the leading and specialist vendors of cybersecurity technologies for the insurance sector. Discover what each vendor offers and who some of their existing clients are.
- Quickly identify attractive investment targets in the insurance industry by understanding which companies are most likely to be winners in the future based on our thematic scorecard.
- Gain a competitive advantage in the insurance industry by understanding the value of cybersecurity solutions for each segment of the insurance value chain.
1Password, Accenture, Ace American, Acuant, Aegon, Aetna, Aflac, AIA, AIG, Airbus (Stormshield), Aisin, Akamai, Alert Logic, Alibaba, Allianz, Allstate, Alphabet (Google), Alphabet (Siemplify), Alphabet (Waymo), Amazon, Ambac, AMD, Analog Devices, Anthem, AnyVision, Aon, Appgate, Apple, Aptiv, Aqua Security, Arcon, Argus Cyber Security, Arthur J. Gallagher, Assicurazioni Generali, AT&T, Atos, Attivo Networks, Auth0, Autocrypt, Avast, Aviva, Aware, AXA, BackNine, BAE Systems, Baidu, Banco Pichincha, Bangladesh Shipping Corporation, Barracuda, Barracuda Networks, BeyondTrust, BioEnable, BlackBerry, BMC Helix, BMW, Bosch, Broadcom, BT, C2A, Cadence Design Systems, Capgemini, Cato, Check Point Software, Checkmarx, China Telecom, China Unicom, Chubb, Cigna, CipherCloud, Cisco, Clear Secure, Clearview, Cloudcheckr, Cloudera, Cloudflare, CloudKnox, CloudPassage, CMITech, CNA Financial, CNO Financial Group, Code42, Cognitec, Cognizant, Colonial Pipeline, Continental, Contrast Security, CoverWallet, Cowbell Cyber, CrowdStrike, Cybellum, CyberArk, Cyberbit, CyberCube, Cybereason, Cymotive, Cynet, D3 Security, Darktrace, Dashlane, Delinea, Dell Technologies, Dellfer, Denso, Deutsche Telekom, Duo Security, DXC Technology, ekey, Equifax, Ermetic, Exabeam, Excelfore, Expanse, Extreme, EY, Eyelock, F5 Networks, Faurecia, FedEx, FireEye, Forcepoint, Ford, Forescout, ForgeRock, Fortinet, Foxpass, Fugue, Fujifilm, Fujitsu, General Motors, GitLab, Green Hills, GuardKnox, GUardicore, HCL Technologies, Helpsystems, Herjavec Group, HID Global, Hiscox, Hitachi, Honda, Horiba Mira, Horizon Robotics, HPE , Huawei, Humana, Hyundai, IBM, IBM (Red Hat), Idemia, IDnow, iFlytek, Illumio, Ilumio, Impulse, Infineon, Infoblox, Informatica, Infosys, Innovatrics, Intel, Invicti, iProov, Iris ID, IriusRisk, Ironscales, Ivanti, Ivanti (MobileIron), Jaguar Land Rover, Johnson Controls, Juniper Networks, Kairos, Karamba, Keen Lab, Keysight, Kia, KnowBe4, KPMG, KT, Lacework, LastPass, LCT Africa, Lexus, Liberty Mutual, Lockheed Martin, LogMeIn, LogMeOnce, Logrhythm, Lookout, Lumen Technologies, Mahindra & Mahindra, Mahle, Majenta Solutions, ManageEngine, Mandiant, Manulife, Markel, Marsh & McLennan, Marvell, Megvii, Mentor Graphics, Mercedes-Benz, Merck, Metromile, Micro Focus, Micron Semiconductor, Microsoft, Mimecast, Mitsubishi, Munich Re, NCC, Ndias, Netskope, Next Insurance, Nissan, Nokia, NordPass, Northrop Grumman, NortonLifeLock, NTT Data, Nvidia, NXP, NXP Semiconductors, NXT-ID, Okta, Old Mutual, Onapsis, One Identity, OneLogIn, OneSpan, OneTrust, Oracle, Orange, Orca Security, Oscar Health, Palantir, Palo Alto Networks, Panasonic, Perimeter 81, Ping An, Ping Identity, Ponemon Institute, Portnox, Proofpoint, Protective Life, Prudential, PwC, Qualys, Rapid7, Raytheon BBN, Raytheon Technologies, Red Hat, RedSeal, ReFirm Labs, Renesas, Resolver, Rhebo, RiskIQ, Royal London, RSA, Ruckus, Russian National Reinsurance Company, S&P Global, SAIC, SailPoint Technologies, Samsung Electronics, SecureAuth, SecureOne, SecureThings, Secureworks, SecurityScorecard, Securonix, SenseTime, SentinelOne, Siemplify, Singtel (Trustwave), Skybox Security, Skyhigh Security, Snyk, Softbank (Arm), SonicWall, Sophos, Sovcomflot, Splunk, State Farm Insurance, STMicroelectronics, Subaru, Sumo Logic, Suzuki, Swimlane, Swiss Re, Symphony Technology Group, Synopsys, Taikang, Talanx, Tanium, Tata Consultancy Services, Tech Mahindra, Tech5, Telefónica, Telstra, Tenable, Tesla, Tessian, Thales, The Hartford, Thoma Bravo, ThreatConnect, Threatmetrix, Threatmodeler, TitanHQ, Tokio Marine, Toyota, Transamerica, Travelers, Trellix, Trellix , Trend Micro, TrueFace.AI, Two Hat, UnitedHealth, Untangle, Upstream Security, USAA, Valeo, Vector, Veoneer, Veracode, Verizon, Versa, VMware, VMware , Vodafone, Volkswagen, WatchGuard, WhiteHat Security, Wipro, WISeKey, W. R. Berkley, Yubico, Zetta Insurance, Zego, ZF, Zhong An, Zscaler, Zurich Insurance
Table of Contents
Cybersecurity Value Chain
The Impact of Cybersecurity on Insurance
Our Thematic Research Methodology