Romania Cyber Insurance Market – By Insurance type (Packaged, Stand-alone), By Component (Services [Risk Mitigating Solutions {Advisory Services, Security Software, Hardware Solutions, Training of Personnels}, Incident Response Services {Crisis Management, Forensic, Customer Notification, Credit & ID Monitoring, Legal}]), By Coverage Type (First Party Coverage [Theft & Fraud, Forensic Investigation, Business Interruption, Extortion, Computer Data Loss & Restoration], Third Party Coverage [Litigation & Regulatory, Regulatory Response, Notification Costs, Crisis Management, Credit Monitoring, Media Liability, Privacy Liability]), By Policy (Data Breach, Identity Theft, Malware Attack, Phishing, Email Spoofing, and Others), By Organization Size (Small & Medium-Sized Enterprises, Large Enterprises), By Industry Vertical (BFSI, IT & Telecom, Retail & E-commerce, Healthcare, Manufacturing, Government & Public Sector, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030

Romania Cyber Insurance Market size is estimated to reach US$2.25 billion by 2030, growing at a CAGR of 30.3% during the forecast period 2024-2030. Increasing Cyber Threat Landscape and Digital Transformation and Increased Dependency on Technology are expected to propel the growth of Romania Cyber Insurance Market. Rising need for high security in case of online transactions, social media, and applications are increasing the security needs of the companies at a rapid rate. Cyber-attacks can cause severe financial and other losses to an organization or an individual. Cyber insurance policy/cyber liability insurance policies/cyber risk insurance allows an organization’s liability for any kind of sensitive data breach, cyber extortion, and network interruption. The market will be driven by the growing awareness against cyber risks and cyber-attacks in many organisations. Additionally, the Romania Cyber Insurance Market continues to experience significant growth in demand driven by escalating cyber threats and increased awareness of cybersecurity risks among businesses worldwide. Factors such as the proliferation of remote work arrangements, the expansion of cloud computing, and the rising sophistication of cyber-attacks contribute to the heightened demand for cyber insurance. 

                                       

The “Romania Cyber Insurance Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Romania Cyber Insurance Market.

 

● During the COVID-19 pandemic, the Romania Cyber Insurance Market experienced a notable impact as businesses rapidly transitioned to remote work environments, increasing their reliance on digital infrastructure and heightening the risk of cyber threats. With the surge in cyber-attacks targeting remote workers and vulnerable systems, demand for cyber insurance surged as businesses sought to bolster their cyber resilience and protect against potential financial losses and liabilities. Additionally, the pandemic-induced economic uncertainty prompted many organizations to reevaluate their risk management strategies, leading to greater awareness of cyber risks and the importance of cyber insurance coverage. 

● The conflict in Ukraine also had repercussions on the Romania Cyber Insurance Market, albeit to a lesser extent compared to the pandemic. Heightened geopolitical tensions and cyber warfare activities raised concerns about the potential for state-sponsored cyber-attacks targeting businesses and critical infrastructure globally. Businesses operating in regions directly affected by the conflict, such as Ukraine and neighboring countries, have experienced increased demand for cyber insurance as they sought to mitigate the heightened risk of cyber-attacks and data breaches amid the geopolitical instability. 

Stand alone is growing at a highest CAGR of 33.1% in the forecast period 2024-2030. Many cyber insurance companies are seeing a shift of policy buyers from endorsement to standalone policies as they help eliminate the risk of silent exposures and makes the market more resilient. This type of policies typically offer liability and risk coverage for losses related to data breaches. In addition, businesses filing a cyber-incident related insurance claim under standalone policies are able to receive monetary compensation of their legal and investigative fees as well as the cost the loss incurred. Moreover several advantages such as availability of the dedicated limits for cyber-attacks, demand for expanded business interruption coverage, expanded coverage of other areas by endorsement policies, and expanded monetary limit in case of the data breach are some of the major reason for the shift from endorsement to standalone policies. Further standalone cyber insurance policies compensate the insured client or customer for the credit monitoring costs, IT forensic costs, data restoration costs, and public relations expenses, which might be incurred due to a data breach. Additionally, such policies also offer cover for the direct losses due to phishing, social engineering frauds, cyber frauds, spoofing, and phreaking, as well as companies’ legal liabilities to third parties.

In the Romania Cyber Insurance Market forecast, Third Party Coverage segment is estimated to grow with a CAGR of 32.2% during the forecast period, With the increasing frequency and sophistication of cyber-attacks, businesses are facing heightened exposure to legal and financial liabilities arising from breaches of sensitive data and the impact on third parties. As a result, there is a growing recognition among organizations of the importance of protecting themselves against third-party claims and lawsuits related to cyber incidents. Third-party coverage provides businesses with financial protection and peace of mind by indemnifying them against the costs of legal defense, settlements, and judgments associated with third-party claims for damages resulting from data breaches, network security failures, and other cyber-related liabilities. Additionally, regulatory mandates such as the GDPR and CCPA impose strict requirements for businesses to safeguard personal data and notify affected individuals in the event of a data breach, further driving the demand for third-party coverage.  

Initially, Romania Cyber Insurance Market demand was seen in media, telecom, technology, and professional services. However, the recent growth is evident across all major industries. In 2023, health care, education, and gaming organizations were the major cyber risk insurance buyers. According to the IndustryARC report, the health care industry is the leading buyer of cyber risk insurance. Thus the demand for cyber insurance in the segment of health care is projected to grow at a CAGR of 35.5% during the aforesaid forecast period. Telecom sector being highly prone to cyber-attack, is considered as the major end-users for cybersecurity market. Approximately, 48% of Telecom organization suffered from DNS-based malware in 2023. Thus, telecom organizations are adopting advanced cyber insurance solutions. Along with the telecom sector, the aerospace industry is considered to be another key end-users to Romania Cyber Insurance Market.

The proliferation of cyber threats, including sophisticated cyber-attacks, data breaches, ransomware, and other forms of cybercrime, continues to drive the demand for cyber insurance. One in every two Indians is an active internet user as per a report from the Internet & Mobile Association of India in 2022. As businesses go digital, their online exposure is increasing and with that, the threat of cyber- attacks and data breaches looms large. A cybersecurity report by Checkpoint in 2023 suggests that global cyberattacks increased by 38% in 2022. The FBI Internet Crime Report 2022 ranks India at #4 behind the US, UK and Canada, in terms of total cybercrime victims. As businesses increasingly rely on digital technologies and data-driven processes, they become more vulnerable to cyber-attacks. As a result, rise in number of cyber-attacks and security breaches across the industry will drive the growth of cyber insurance in the forecast period.

The ongoing digital transformation across industries, accelerated by factors such as remote work arrangements and the adoption of cloud-based services, has led to an increased reliance on technology and digital infrastructure. As businesses digitize their operations, they become more susceptible to cyber risks, including data breaches, ransomware attacks, and other cyber threats. This heightened vulnerability drives the demand for cyber insurance as organizations seek financial protection against potential cyber incidents that could disrupt operations, compromise sensitive data, and result in significant financial losses. Additionally, the expansion of Internet of Things (IoT) devices and interconnected systems further amplifies the need for comprehensive cyber insurance coverage to address the evolving cyber risk landscape.

While the demand for cyber insurance continues to rise amidst escalating cyber threats, insurers face challenges in accurately assessing and pricing cyber risks due to the evolving nature of cyber threats, lack of historical data, and the potential for catastrophic losses. As a result, premiums for cyber insurance policies can be prohibitively expensive, especially for organizations with complex IT infrastructures and high exposure to cyber risks. For instance, under the Digital Personal Data Protection Act, 2023, which proposes fines of up to INR 250 crore ($30.12 million) for failing to take reasonable security safeguards to prevent a personal data breach. Such strict regulatory measures are expected to encourage companies to view cyber insurance as a risk management investment rather than a "cost".

     

                                         

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Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Romania Cyber Insurance Market. The top 10 companies in this industry are listed below: