Archived Facts

Los Angeles, CA (PRWEB) July 03, 2013

As more business is increasingly conducted online, more personal and financial information is exchanged using the internet. Cyber attacks and hacking could potentially result in customer identity theft and, consequently, financial loss for a company, placing liability on the business. Cyber liability insurance has become increasingly attractive to companies seeking protection against financial losses from legal issues stemming from data breaches, IBISWorld industry analyst Andrew Krabeepetcharat says. Particularly, e-commerce and online auctions have increased demand for industry services during the five years to 2013, as these online retailers seem to fall victim to cyber security attacks most often.

However, in the five years to 2013, the Cyber Liability Insurance industry has benefited from all types of companies integrating online services into their business operations. During this time, industry revenue is expected to grow at an average annual rate of 11.8% to $ 1.5 billion because of the rising percentage of services conducted online. This skyrocketing growth in revenue includes an expected 17.8% jump in 2013, as a growing number of cyber attacks prompt businesses to take preventative measures. Businesses that manage customer data, such as credit card information, have been a particularly strong source of demand, Krabeepetcharat says.

Concentration in the Cyber Liability Insurance industry is low. Most insurance providers operate within metropolitan areas and provide services to a wide range of clients, which can include Fortune 500 corporations and start-up companies. Nonetheless, market share has decreased in the five years to 2013 because a number of companies entered the industry at a time when data breaches were becoming a large threat. As a result, larger companies have started looking to expand their footprint in more profitable areas where such threats are most prominent.

The Cyber Liability Insurance industry is expected to continue to grow during the five years to 2018. The percentage of services conducted online is projected to increase in the next five years, encouraging more businesses to purchase cyber liability insurance to prevent significant financial loss from potential cyber attacks. Growth in major markets such as healthcare, financial services and retail are expected to help push the industry forward during this period because of growing concerns regarding identity theft. Also, internet traffic volume is expected to grow quickly in the five years to 2018, prompting new online businesses to purchase cyber liability coverage. For more information, visit IBISWorlds Cyber Liability Insurance in the US industry report page.

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IBISWorld industry Report Key Topics

This industry underwrites (i.e. assumes risk and assigns premiums) cyber liability insurance, which is used to protect businesses’ and working professionals’ lost income or liabilities related to business interruptions, network security, internet liability, electronic communications, intangible assets and web-content liability.

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About IBISWorld Inc.

Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.







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