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Canada Cyber (Liability) Insurance Market Size (2024 - 2029)

The Canadian cyber insurance market is relatively small but is experiencing growth due to increasing demand driven by the shift to remote work and the exposure of new vulnerabilities. As the market evolves, insurers are adapting to the changing threat landscape and refining their products in response to the frequency and severity of cyber claims. Despite the market's volatility and challenges such as low-interest rates affecting profitability, there is a significant opportunity for brokers to expand coverage, particularly as awareness grows in industries less familiar with cyber risks. The market's size means that substantial losses can prompt quick adjustments from insurers, highlighting the dynamic nature of this sector.

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Market Size of Canada Cyber (Liability) Insurance Industry

Canada Cyber Insurance Market Summary
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

Canada Cyber Insurance Market Major Players

*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 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
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Canada Cyber (Liability) Insurance Market Size Summary

The Canadian cyber insurance market is in a nascent stage, characterized by its relatively small size and youthful nature. However, it is poised for growth as the demand for cyber insurance is expected to rise, driven by the shift towards remote work arrangements post-COVID-19, which have highlighted vulnerabilities in home network security. The market has evolved significantly over the past two decades, adapting to new threat landscapes and increasing the frequency and severity of cyber claims. This evolution has prompted insurers to continually refine their offerings. Despite the market's growth, it remains small, making it susceptible to significant losses that could prompt rapid adjustments by insurers. The market has experienced volatility, with substantial pricing increases and higher deductibles, influenced by low-interest rates and the need for underwriting profitability.

The landscape of cyber insurance in Canada is shaped by regulatory frameworks like PIPEDA, which encourage businesses to adopt proactive cybersecurity measures. While industries such as finance, healthcare, and retail are more aware of cyber risks, sectors like construction and manufacturing are gradually recognizing the importance of cybersecurity. Ransomware remains a dominant threat, with a significant portion of claims attributed to it, and the trend of data exfiltration has added a layer of complexity to cyber incidents. The market has seen new entrants and increased capacity, with major players like AXA, Allianz, and Coalition expanding their offerings. Coalition's entry into the excess cyber insurance market and its acquisition of BinaryEdge highlight the ongoing efforts to enhance coverage and cybersecurity capabilities for businesses in Canada.

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Canada Cyber (Liability) Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 High Rate of Recovery of Financial Losses to Promote the Market's Growth

      2. 1.2.2 Increase in Frequency and Sophistication of Cyber Threats

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of Cybersecurity Insurance Awareness

      2. 1.3.2 Soaring Cybersecurity Insurance Costs

    4. 1.4 Market Opportunities

      1. 1.4.1 Adoption of Artificial Intelligence and Blockchain Technology for Risk Analytics

    5. 1.5 Value Chain Analysis

    6. 1.6 Industry Attractiveness: Porter's Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Insights into Technological Advancements in the Industry

    8. 1.8 Impact of the COVID-19 Pandemic on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Insurance Type

      1. 2.1.1 Packaged

      2. 2.1.2 Stand-alone

    2. 2.2 By Coverage

      1. 2.2.1 Data Breach

      2. 2.2.2 Cyber Liability

      3. 2.2.3 First-party Coverage

      4. 2.2.4 Third-party Coverage

      5. 2.2.5 Other Coverages

    3. 2.3 By Enterprise Size

      1. 2.3.1 Large Enterprises

      2. 2.3.2 SMEs

    4. 2.4 By End User

      1. 2.4.1 BFSI

      2. 2.4.2 IT and Telecommunication

      3. 2.4.3 Retail and E-commerce

      4. 2.4.4 Healthcare

      5. 2.4.5 Manufacturing

      6. 2.4.6 Government and Public Sector

      7. 2.4.7 Other End Users

Canada Cyber (Liability) Insurance Market Size FAQs

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.

In 2024, the Canada Cyber Insurance Market size is expected to reach USD 0.48 billion.

Canada Cyber (Liability) Insurance Market Report Snapshots

Canada Cyber (liability) Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)