The global cybersecurity insurance market has entered an accelerated growth period with an expected compound annual growth rate (CAGR) in excess of 10% for the next few years, Straits Research and GlobalData forecast. 

The cybersecurity insurance market will increase at a CAGR of 19.5% to reach $38.7 billion by 2030, a recent Straits Research report showed. Researchers also projected the health care sector will hold the largest market share with a 20.8% CAGR, and revenue from large enterprises will grow at an 18.3% CAGR.

GlobalData reported a similar forecast, predicting revenue will grow from $6.4 billion in 2020, to $10.6 billion in 2025.

“The Russia-Ukraine war has increased the likelihood of state-sponsored cyberattacks that target critical infrastructure, military operations, and businesses. Such attacks not only target insurers but lead to expensive payouts and damage the reputations of those reluctant to pay,” Amrit Dhami, thematic research associate analyst at GlobalData, said in a statement. 

Additionally, Straits Research named XL Group, American International Group, Berkshire Hathaway, Zurich Insurance, The Chubb Corporation, Aon PLC, Bin Insurer, Lockton Companies, SecurityScorecard, Allianz Global Corporate & Specialty, and Munich Re Group as competitive players in the cybersecurity insurance industry.

Straits Research’s report also noted that North America is the highest revenue contributor to the global cybersecurity insurance market and Europe is the fastest-growing region. The firm projected the North America market size to grow at a CAGR of 15.32% from 2022 to 2030.

“North America is considered to have the largest market for cybersecurity insurance worldwide. In addition to holding a sizable portion of the market, the region is also brimming with essential industry players,” researchers wrote.

The European market is expected to generate $13 billion in revenue growing at a 23% CAGR.

“Regarding cybersecurity, European nations like Germany are portraying themselves as technologically independent nations equal to China and the United States,” with funding support from governments, Straits Research noted.