Cyber Insurance - Market Size
In determining the US cyber insurance market size, your research team was able to find that currently it is worth approximately $5.5 billion. These findings, plus the calculations used to arrive at this figure are summarized below.
- In 2017, the global cyber insurance market size was US$3.89 billion.
- It was expected to grow at a CAGR of 38% from 2017 to 2025.
- The US and Europe make up the bulk of the global market, with nearly all the premiums coming from the US. There are only four subscribers in the US, along with Lloyd's, that generate nearly 60% of the total premium.
- In 2015, the global cyber insurance market size was USD 2 billion. Out of that, the US controlled $1.5 billion.
- CAGR for global cyber insurance market growth from 2015 to 2017 is 39.46%, hence, with this growth, the US had a cyber insurance market size of $2.915 billion.
- Therefore, with a CAGR of 38% between 2017 and 2019, the current US market is approximately $5,551,326,000. The global cyber insurance market should be $7.5 billion by the end of the decade, according to PwC.
In finding the market size for the US, we first did a straightforward search for a direct answer. We found a source that only mentioned the US market size in 2015. However, in this search results came up about the global market, and what it would be by 2025. We searched some more but we were unable to find a direct answer through this strategy, hence we changed strategy.
In our next strategy we looked for a global market size with CAGR. We did this in the hopes of deriving the US figure, and then using the CAGR of the global market to calculate what it would be for the US. Since the US market formed such a large percentage of the global market, and the CAGR remained relatively steady from 2015, we determined that it was safe to assume the US's growth should be the one driving global growth, and should be in lockstep with global growth.
With this in mind, we found what the global market was worth in 2015 and also in 2017, hence we found what the growth was over those two years. We used an online calculator to find that the CAGR was 39.46%, and with this we found that the US's market value in 2017 was $5.5 billion. Since we already had the CAGR from 2017 to 2025, and using the same assumption that the US's growth would be in lockstep with global growth, we used this to calculate what the US market would be in late 2019. We used the online calculator again and found that it is $5.5 billion. We believe that this follow the trend as seen by PwC, where they calculate that the global market size by 2020 will be $7.5 billion.