Canada Cyber Insurance Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2026-2035)

Key Trends in the Market

Cyber insurance refers to a contract of surety purchased by businesses as a precautionary measure against cybersecurity incidents. It covers the losses arising from damage to computer systems, personal data breach of customers, and the costs associated with recovery of lost data. It reduces the company’s liability to its stakeholders and third parties and ensures smooth business operations.

• The number of companies affected by cyberattack grew from 78% in 2020 to 85.7% in 2021. Nearly 65% companies expect to witness a ransomware attack in the future. This can cause them to spend $2 million in repairs and damage control. To lower the chances of incurring losses  and reduce financial risks associated with doing business online, companies are increasingly adopting cybersecurity insurance.

• Canadian Anti-Fraud Centre estimates that Canada lost approximately $100 million to online fraud. Out of this, nearly $70 million was investment fraud involving cryptocurrencies. This is expected to strengthen the banking system regulations surrounding non-legal tender and boost the Canada cyber insurance market demand.

• Many retail shops have shifted to an online marketplace for generating better sales revenue and earning profits after the COVID-19 pandemic. However, an increase in the number of malware and phishing attacks adversely affect their databases containing critical consumer information like mobile phone number, address, and credit card details. This is expected to increase the adoption of cyber insurance by small and medium size companies and boost the Canada cyber insurance market growth.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Market Segmentation

Market Share by Coverage

As per the Canada cyber insurance market analysis, first party coverage is expected to lead the demand for cyber insurance policies. This is because of its comprehensive nature that covers the expenses for investigation of accident, providing anti-fraud services to customers, and compensating the revenue lost due to disruption of operations. Third party coverage generally compensates legal costs and regulatory fines associated with non-compliance of court’s requirements. It is also expected to rise in demand as research into malicious attacks becomes more precise and transparent.

First party coverage enables an assessment of the risk of future cyber frauds and provides for ransomware payments up to the coverage limit in policy. This is an attractive option for many businesses as the cost of repayment can be substantial, and it can save them money and resources.

Market Share by End-Use

The manufacturing sector is expected to account for a significant Canada cyber insurance market share as the incidence of cyberattacks aimed at damaging critical infrastructure rises within the sector. In 2021, Canada’s manufacturing sector remained the most attacked, experiencing around 1 in 3 cyber incidents, which was higher than the global average of 1 in 4. This adversely impacted Canadian manufacturers’ ability to operate efficiently and earn revenues, which is expected to boost the demand for cyber insurance.

The energy related businesses and the BFSI and healthcare sectors are also expected to witness a surge in demand for cyber insurance as they are among the most attacked industries online in Canada.

Competitive Landscape

Other Canada cyber insurance market players include American International Group, Inc. Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft, Zurich Insurance Group AG, Aviva Plc, CNA Financial Corporation, Coalition, Inc., and SGI CANADA Insurance Services Ltd., among others.