Canada Cyber Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.48 Billion |
| Market Size (2029) | USD 1.04 Billion |
| CAGR (2024 - 2029) | 16.89 % |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Canada Cyber Insurance Market Analysis
The Canada Cyber Insurance Market size in terms of premium value is expected to grow from USD 0.48 billion in 2024 to USD 1.04 billion by 2029, at a CAGR of 16.89% during the forecast period (2024-2029).
In response to escalating cyber threats, the Canadian cyber (liability) insurance market has swiftly adapted. As cyberattacks, from ransomware to sophisticated phishing schemes, become more prevalent, organizations of all sizes and industries recognize the critical need for comprehensive cyber insurance. Beyond just coverage for breaches, cyber liability insurance now also encompasses legal fees and expenses tied to privacy violations and regulatory fines, especially as Canada's data protection regulations tighten.
The digital transformation, hastened by the COVID-19 pandemic, has spurred a heightened demand for cyber insurance in Canada. As businesses pivot to remote work and cloud operations, the urgency for protection has intensified. Notably, small and medium-sized enterprises (SMEs) are becoming more conscious of their vulnerabilities, often seen as easy targets by cybercriminals due to their limited cybersecurity resources.
The unpredictable nature of cyber risks complicates policy pricing for insurers. The absence of standardized data on cyber incidents, coupled with the ever-evolving cyber threat landscape, adds to the challenge. Furthermore, as cyberattacks grow in frequency and severity, businesses face rising premiums and stricter underwriting standards.
Canada Cyber Insurance Market Trends
Evolving Regulatory Reforms are Boosting the Market's Growth
In Canada, the Personal Information Protection and Electronic Documents Act (PIPEDA) is guiding companies to adopt proactive cybersecurity measures, shifting focus from traditional reactive approaches. Insurers are increasingly prioritizing system security and the safeguarding of personal information. Canada was among the pioneers globally, enacting federal legislation mandating notifications for cyber and privacy breaches. However, the absence of explicit minimum standards in Canadian legislation means companies lack a baseline to follow, leading to a notable degree of cyber apathy in the country.
While PIPEDA has undoubtedly heightened awareness of cyber policies as risk transfer tools for businesses, the infrequency of regulatory fines, especially for entities like manufacturers or construction firms that do not handle significant personally identifiable information (PII), has resulted in minimal claims activity for the average Canadian business. In fact, under 4% of cyber claims arise from third-party or regulatory actions. Privacy laws have intersected with emerging ransomware variants that exfiltrate sensitive data, leveraging this to coerce companies into meeting their demands.
Ransomware Dominates the Cyber Threat Landscape in Canada, Targeting Key Industries
Ransomware attacks emerged as the most disruptive cyber threat in Canada. Ransomware constituted 31% of total claims last year, with Canadian businesses accounting for nearly half of that figure across the world. Criminals are increasingly stealing confidential information and threatening its release unless ransom demands are met. They now conduct thorough due diligence to gauge the maximum amount an organization can afford, tailoring their extortion demands accordingly.
Key targets include companies in manufacturing, construction, healthcare, and pharmaceuticals. Ransomware, once primarily viewed as a concern for business interruptions or system damage, is now increasingly seen as a privacy issue, triggering obligations to notify customers and stakeholders. However, businesses must remain vigilant. While ransomware attacks dominate headlines, traditional phishing attacks leading to business email compromises and wire transfer fraud still represent a significant portion of global claims, including from Canadian policyholders.
Competitive Landscape
The Canadian cyber (liability) insurance market is semi-fragmented. The market has witnessed several new market entrants this year, and capacity continues to be available. The competitive landscape of the market has also been analyzed in the report. Some of the major players include AXA, Allianz, Chubb, Coalition, and Aviva.
Canada Cyber Insurance Market Leaders
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AXA
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Allianz
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Aviva
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Chubb
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Coalition
*Disclaimer: Major Players sorted in no particular order
Canada Cyber Insurance Market News
- April 2024: BOXX Insurance, a frontrunner in Canada's cyber insurtech landscape, launched CyberboxxTM Business 5.0. This flagship product is touted as a solution for cyber insurance and protection. Cyberboxx Business 5.0 combines cyber threat prediction, prevention, and comprehensive insurance coverage. Its advanced features acknowledge the intertwined realities of today's business landscape.
- September 2023: Coalition announced a new long-term partnership with HDI Global Specialty SE, the specialty insurance carrier of HDI Global SE offering international insurance. In 2024, HDI Global Specialty joined Coalition's Cyber and Technology E&O panel in Canada to provide insurance capacity. The insurer assumed a quota share on all cyber insurance products Coalition provides in Canada, incepting on or after January 1, 2024.
Canada Cyber Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 High Rate of Recovery of Financial Losses to Promote the Market's Growth
4.2.2 Increase in Frequency and Sophistication of Cyber Threats
4.3 Market Restraints
4.3.1 Lack of Cybersecurity Insurance Awareness
4.3.2 Soaring Cybersecurity Insurance Costs
4.4 Market Opportunities
4.4.1 Adoption of Artificial Intelligence and Blockchain Technology for Risk Analytics
4.5 Value Chain Analysis
4.6 Industry Attractiveness: Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Insights into Technological Advancements in the Industry
4.8 Impact of the COVID-19 Pandemic on the Market
5. MARKET SEGMENTATION
5.1 By Insurance Type
5.1.1 Packaged
5.1.2 Stand-alone
5.2 By Coverage
5.2.1 Data Breach
5.2.2 Cyber Liability
5.2.3 First-party Coverage
5.2.4 Third-party Coverage
5.2.5 Other Coverages
5.3 By Enterprise Size
5.3.1 Large Enterprises
5.3.2 SMEs
5.4 By End User
5.4.1 BFSI
5.4.2 IT and Telecommunication
5.4.3 Retail and E-commerce
5.4.4 Healthcare
5.4.5 Manufacturing
5.4.6 Government and Public Sector
5.4.7 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 AXA
6.2.2 Allianz
6.2.3 Assicurazioni Generali
6.2.4 Coalition
6.2.5 Aviva
6.2.6 Rogers Insurance
6.2.7 Chubb
6.2.8 SGI Canada
6.2.9 Boxx Insurance
6.2.10 Cansure*
- *List Not Exhaustive
7. FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Canada Cyber Insurance Industry Segmentation
Cyber liability insurance serves as a protective contract for entities engaged in online business, helping to mitigate associated financial risks. By paying a monthly or quarterly premium, businesses can transfer a portion of their online risks to the insurer.
The Canadian cyber (liability) insurance market is segmented by insurance type, coverage, enterprise size, and end user. By insurance type, the market is segmented into package and stand-alone. By coverage, the market is segmented into data breach, cyber liability, first-party coverage, third-party coverage, and other coverages. By enterprise size, the market is segmented into large enterprises and SMEs. By end user, the market is segmented into BFSI, IT and telecommunication, retail and e-commerce, healthcare, manufacturing, government and public sector, and other end users. The report offers market size and forecasts in value (USD) for all the above segments.
| By Insurance Type | |
| Packaged | |
| Stand-alone |
| By Coverage | |
| Data Breach | |
| Cyber Liability | |
| First-party Coverage | |
| Third-party Coverage | |
| Other Coverages |
| By Enterprise Size | |
| Large Enterprises | |
| SMEs |
| By End User | |
| BFSI | |
| IT and Telecommunication | |
| Retail and E-commerce | |
| Healthcare | |
| Manufacturing | |
| Government and Public Sector | |
| Other End Users |
Canada Cyber Insurance Market Research FAQs
How big is the Canada Cyber Insurance Market?
The Canada Cyber Insurance Market size is expected to reach USD 0.48 billion in 2024 and grow at a CAGR of 16.89% to reach USD 1.04 billion by 2029.
What is the current Canada Cyber Insurance Market size?
In 2024, the Canada Cyber Insurance Market size is expected to reach USD 0.48 billion.
Who are the key players in Canada Cyber Insurance Market?
AXA, Allianz, Aviva, Chubb and Coalition are the major companies operating in the Canada Cyber Insurance Market.
What years does this Canada Cyber Insurance Market cover, and what was the market size in 2023?
In 2023, the Canada Cyber Insurance Market size was estimated at USD 0.40 billion. The report covers the Canada Cyber Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Canada Cyber Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Cyber (Liability) Insurance Industry Report
Statistics for the 2024 Canada Cyber (Liability) Insurance market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Canada Cyber (Liability) Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
