Sri Lanka Cyber (Liability) Insurance Market Size (2024 - 2029)

The Sri Lanka Cyber Liability Insurance Market is characterized by a limited market size with significant growth potential, driven by both internal and external factors. Despite the increasing frequency of cyber threats such as malware, phishing, and ransomware, the market faces challenges due to inadequate coverage options and high premium costs that many firms find prohibitive. The development of digital policies and cybercrime laws in Sri Lanka is still in progress, hindering effective legal support. The economic crisis, exacerbated by the currency's decline, has further complicated the landscape, making it difficult for businesses to renew cybersecurity licenses. As a result, the insurance industry is struggling to meet the evolving cybersecurity needs of professionals in the country.

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Market Size of Sri Lanka Cyber (Liability) Insurance Industry

Sri Lanka Cyber (Liability) Insurance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 2.00 %
Market Concentration Low

Major Players

Sri Lanka Cyber (Liability) Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Sri Lanka Cyber (Liability) Insurance Market Analysis

The Sri Lanka Cyber Liability Insurance Market achieved a market size of USD XX million in 2022 and is expected to grow at a CAGR of about 2% between 2021 and 2027. 

Sri Lanka's cyber insurance market is currently very small, yet, it has good growth potential due to supportive internal and external factors. Given the damages from data breaches caused by cyberattacks globally, Sri Lanka's cyber insurance does not provide the necessary levels of coverage for losses. Most firms find the premium amount unacceptably expensive, given their minimal coverage. Additionally, Sri Lankan digital policy, data protection, and cybercrime laws still need to be developed sufficiently to offer effective legal defense and assistance.

Information technology professionals and their management in Sri Lanka are now looking to Cyber insurance products as solutions in managing the risks as incidents of malware, phishing, and ransomware are occurring more frequently in "corporate" Sri Lanka. Although the new Personal Data Protection Act is making its way through Parliament, with increased exposures resulting from "work from home," professionals are experiencing more cyber-attacks than ever. They find the Sri Lankan insurance industry needs to be more responsive to their cyber security needs.

The recent fall of the Sri Lankan currency has driven up the cost of renewing licenses for cybersecurity products. As many businesses experience an increase in phishing and distributed denial-of-service attacks, opportunistic hackers are using the crisis as an excuse to plunder. Cyber insurers are reluctant to renew current coverage as Cybersecurity is the second concern, while the financial crisis is causing food and medicine shortages in the country.

Sri Lanka Cyber (Liability) Insurance Industry Segmentation

Cyber liability insurance or cyber insurance covers individuals and businesses in the event of a cyber-attack or data breach where the information of an individual and customer is impacted. It helps reduce the financial risk associated with doing business online in case of a data breach or any other online fraud in return for a certain premium to the insurer. With technological advancement and increasing cybercrime rate, it is one of the important covers in the present time. The Sri Lanka cyber-liability insurance can be segmented by business type and industry. The report also offers a complete background analysis of the Sri Lanka cyber liability insurance market, including the analysis and forecast of market size, market segments, industry trends, and growth drivers.

By End Users
Personal
SMEs
Corporates
By Industry
Financial Services
Government Bodies/ Agencies
Healthcare
Professional Services
Other Industries
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Sri Lanka Cyber (Liability) Insurance Market Size Summary

The Sri Lanka cyber liability insurance market is in its nascent stages, characterized by a modest market size but significant growth potential driven by both internal and external factors. Despite the increasing frequency of cyberattacks such as malware, phishing, and ransomware, the market faces challenges due to the high cost of premiums relative to the limited coverage offered. The development of robust digital policies, data protection, and cybercrime laws is still underway, which hampers the effectiveness of legal defenses and assistance. The economic crisis has further complicated the landscape, with the depreciation of the Sri Lankan currency increasing the cost of cybersecurity product licenses and making cyber insurance less accessible. This has led to a reluctance among insurers to renew coverage, as the focus shifts to more immediate economic concerns.

The economic downturn has exacerbated the vulnerability of businesses to cyber threats, with opportunistic hackers exploiting the situation to carry out infrastructure breaches, financial fraud, and ransomware attacks. Government websites have become frequent targets, and the prevalence of phishing attacks is notable in sectors such as manufacturing, education, and healthcare. The market remains small, with only a few players like Fairfirst Insurance, Allianz, AXA XL, and Milliman Insurance offering cyber liability insurance. Innovations such as Fairfirst Insurance's AI-powered Click2Claim platform highlight efforts to enhance service delivery, while partnerships like that of Allianz Lanka and Cargills Bank aim to expand insurance solutions. However, the overall ability of businesses to invest in cybersecurity remains constrained by the ongoing economic challenges.

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Sri Lanka Cyber (Liability) Insurance Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights on Various Regulatory Trend Shaping the Market

    6. 1.6 Insights on Incident Response Initiatives of Other Developing Markets With Potential Use-Cases in Sri Lankan Market

    7. 1.7 Impact of Economic Crisis on Cyber Insurance Penetration of Sri Lanka

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By End Users

      1. 2.1.1 Personal

      2. 2.1.2 SMEs

      3. 2.1.3 Corporates

    2. 2.2 By Industry

      1. 2.2.1 Financial Services

      2. 2.2.2 Government Bodies/ Agencies

      3. 2.2.3 Healthcare

      4. 2.2.4 Professional Services

      5. 2.2.5 Other Industries

Sri Lanka Cyber (Liability) Insurance Market Size FAQs

The Sri Lanka Cyber (Liability) Insurance Market is projected to register a CAGR of 2% during the forecast period (2024-2029)

Fairfirst Insurance, Milliman Insurance, Allianz , Axa and IIRM Lanka are the major companies operating in the Sri Lanka Cyber (Liability) Insurance Market.

Sri Lanka Cyber (Liability) Insurance Market Report Snapshots

SRI LANKA CYBER (LIABILITY) INSURANCE MARKET Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)