Crime Insurance Market Research, 2032
The global crime insurance market was valued at $13.7 billion in 2022, and is projected to reach $47.7 billion by 2032, growing at a CAGR of 13.5% from 2023 to 2032.
Crime insurance is a risk management strategy that defends against loss of property, loss of finance, corporate frauds and others thefts. The solutions Criminal insurance assists in the filing of claims resulting from criminal offenses such as theft, robbery, fraud, and security breaches that could cause harm to a firm.
Key Takeaways:
- By coverage , the fraud segment held the largest share in the crime insurance market in 2022.
- On the basis of end-user segment, the business sub-segment accounted for highest share in the crime insurance market in 2022.
- In case of region, North America captured the largest share in 2022. However, the Europe region will be growing during the forecast period.
Crime insurance provides a number of advantages, such as safeguarding against theft and abuse by spouses, protecting against computer fraud, providing coverage for commodities in transit, and facilitating fraud switching. Additionally, it addresses a number of criminal activities, such as employee theft, fraud, alteration, money laundering, computer fraud, fraud, costs associated with conducting investigations and suing parties, and theft by third parties.
This report focuses on the growth prospects, restraints, and trends in the crime insurance market forecast. This study provides Porter's five forces analysis to understand the impact of various factors such as the market power of suppliers, competitive strength of competitors, threat of new entrants, threat of substitutes, and bargaining power of consumers on the perspective of crime insurance market outlook.
Segment Review
The global crime insurance market is segmented into coverage, end user, and region. On the basis of coverage, the market is categorized into fraud cover, forgery cover, theft cover, kidnapping cover, and others. On the basis of end user, the market is bifurcated into individuals and business. On the basis of region, the crime insurance market is studied across North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
On the basis of end user, the business segment dominated the crime insurance market in 2022. This is due to increase in regulatory compliance associated with protection of sensitive information and financial assets. However, the individual segment is projected to grow during the forecast period. This is because of increase in concern for identity theft protection and growth of freelancing, remote work and home-based business assets as individuals have valuable equipment and intellectual property in their home that can come under theft situations.
On the basis of coverage, fraud cover dominated the crime insurance market in 2022. This is due to high-speed internet connectivity and high-speed internet accessibility. There is an increase in cybercrimes, hackers have used their coding techniques to change and manipulate data as per their convenience.
Competition Analysis
Competitive analysis and profiles of the major players in the Crime insurance market include JS Downey Insurance Service, Nationwide Mutual Insurance Company, Chubb, Morris & Reynolds Insurance, American International Group, Inc., HDFC ERGO General Insurance Company Ltd, Allianz SE, The Guarantee Company of North America, The Travellers Companies, Inc. and Aon Plc. These players have adopted various strategies to increase their market penetration and strengthen their position in the Crime insurance industry.
Recent Product Launch in the Crime Insurance Market
In November 2020, Risk Placement Services Inc. launched a new commercial crime insurance product to cover against fraud losses implemented by external and internal parties. The new commercial crime policy offers different crime coverage such as employee theft, ERIS fraud, forgery and alteration, computer fraud, money orders and counterfeit currency, fund transfer fraud, full limit social engineering coverage, and others.
In August 2023, Howden Insurance, a global insurance group launched blended insurance product that brings together professional indemnity, crime and cyber liability, into one policy under one limit. The product offers different approach to insurance for financial institutions, offering potential cost savings and improved efficiencies.
In October 2020, Bitstamp offered the new crime insurance coverage policy through specialist insurance brokers, Paragon International Insurance Brokers with support from Woodruff Sawyer. The policy covers a range of crime-related cases including employee theft, asset storage during transit, loss due to computer fraud, fraud related to fund transfer, and loss related to legal fees and expenses.
Recent Acquisition in the Crime Insurance Market
In September 2023, Capegemini signed an agreement to acquire Finance Crime Compliance (FCC) division of Exiger. The acquisition is expected to help strengthen group offerings in financial crime, risk management, and regulatory compliance services. Moreover, it is projected to combine FCC division deep domain capabilities, the advisory board of ex-regulators, and Capegemini network of alliances to orchestrate end-to-end ecosystem to drive advisory-led transformation in finance crime compliance.
In December 2023, Aon plc. signed an agreement to acquire National Financial Partners Corporation (NFP) company, an important middle market property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor for $13.4 billion. The aim behind this strategic move is to enhance the company footprint in the rapidly growing middle-market segment, comprising risk, benefits, wealth, and retirement plan advisory services. This move is also anticipated to enhance company position in the crime insurance by enabling them to provide risk and crime-related solutions through NFP.
Market Landscape and Trends
There has been a rise in cyber-crimes at an alarming rate due to digitalization. Businesses have understood the importance of coverage against data breaches, ransomware attacks and other cyber-attacks. The working and operating climate of different industries have changed, and crime insurance providers have developed their policies and solutions accordingly to help businesses satisfy their requirements.
Top Impacting Factors
Growth in advancements in technology
Large volume of data generation has taken place and cybercrime has increased at an accelerating rate due to advancements in technology. Activities such as data breaches, ransomware attacks, and others have increased demand for the crime insurance market. Furthermore, social engineering attack activities have increased. Cybercriminals manipulate people of any system or organization to gain unauthorized access and release sensitive information. Crime insurance policy helps to cover loss related to social engineering and phishing attacks. In addition, currently there has been a rapid increase in digital transactions;criminals search for different loopholes to carry out fraud in these transactions. Hence, criminal insurance helps cover these fraudulent activities. Moreover, today the supply chains are connected through technology, thus opening several windows for criminals to conduct theft, fraud, and criminal activities. Crime insurance helps in covering supply chain losses. Therefore, all these factors are expected to escalate the crime insurance market size during the forecast period.
Increase in globalization
Surge in globalization has led to the rise in number of small, medium, and large-scale companies and businesses in the world. The companies have done business and carried out cross-border operations on a global level. Operating in different countries has become a difficult and challenging task for companies and businesses. There are different legal systems and law enforcement in different countries that have led to crime such as fraud, theft, and corruption forcing businesses to adopt crime insurance technology. Furthermore, political and economic instability has occurred in different regions creating a conducive environment for crime such as theft, fraud, forgery, kidnapping, and others due to globalization. In addition, operating in different countries lead to different levels of corruption and bribery risks. Moreover, complying with Foreign Corrupt Practices Act (FCPA) in the U.S. has become highly challenging. Crime insurance helps in covering costs related to legal actions and investigations resulting from corruption charges. Therefore, all these factors are expected to enhance crime insurance market share during the forecast period.
Rise in complexities of claim process
Crime claims related to fraud, theft, forgery, and kidnapping are highly complex. The investigation consumes a large amount of time and results in financial instability for the businesses. Furthermore, the claims process includes detailed documentation, including proof of loss, crime evidence, and other relevant information, which is very time-consuming. Moreover, the complexities related to the coverage assessment can hamper the growth of the crime insurance market as it is expected to consume a large space of time for businesses to analyze the scope of coverage and how it applies to their current requirement. Therefore, all these factors are expected to hinder crime insurance market growth during the forecast period.
Surge in evolution in regulation of policy
Increase in regulatory compliance costs related to crime insurance restrains the growth of the crime insurance market. Furthermore, policy variations are expected to lead to delay crime insurance policy development and create a sense of mistrust among businesses to adopt crime insurance policy. Furthermore, regulatory policies are being implemented by various governments, these policies have hindered with the flexibility of solutions that an insurer provides to the businesses, thus obligating them to insert mandatory features in the policy which the businesses may not want to buy. Therefore, all these factors are expected to hamper the growth of crime insurance market during the forecast period.
Growth in demand for cyber insurance
Data breach, business interruption and damage of reputation is resulting in rise of expenditure. Furthermore, the demand for cyber insurance solution is increasing as the solution can mitigate cost and can create an expansion opportunity for the crime insurance market. Organizations are mandated by authorotative bodies such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR) to protect sensitive data. Additionally, as part of their overall risk management plan, firms are now searching for cyber insurance coverage in order to comply with these rules. Consequently, during the projected period, all of these aspects are anticipated to generate important chances for the crime insurance market growth
Key Benefits for Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the crime insurance market analysis from 2022 to 2032 to identify the prevailing crime insurance market opportunity.
Market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the crime insurance market segmentation assists in determining the prevailing crime insurance market opportunities.
Major countries in each region are mapped according to their revenue contribution to the market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes an analysis of the regional as well as crime insurance market trends, key players, market segments, application areas, and market growth strategies.
Crime Insurance Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 47.7 billion |
 Growth Rate | CAGR of 13.5% |
 Forecast period | 2022 - 2032 |
 Report Pages | 400 |
 By Coverage |
|
 By End User |
|
 By Region |
|
 Key Market Players | Allianz SE, Aon plc., Nationwide Mutual Insurance Company, Chubb, JS Downey Insurance Service, Morris & Reynolds Insurance, HDFC ERGO General Insurance Company Ltd., American International Group, Inc., The Guarantee Company of North America, The Travellers Companies, Inc. |
Analyst Review
Crime insurance covers loss of tangible property, money and security related to an individual or a business. Increase in cyber-attacks and thefts have pushed the market. Furthermore, emergence of small and large businesses on a global scale has further enhanced market growth. Crime insurance helps to support and cover financial losses occurred from complex business operations.
Key players in the crime insurance market adopt partnership, and product launch as their key development strategy to sustain their growth in the market. For instance, in February 2023, Coalition collaborated with Zurich Insurance Group and launched new offerings related to crime and fiduciary liability insurance. The new solution tackles negligence and mismanagement of benefit plans, that might lead to unnecessary fiduciary liability claims. Moreover, the solution helps the client to manage risk related to their employee benefit plan including excessive fee coverage, settlor coverage, and an array of covered civil penalties. This strategy is expected to help both the companies to strengthen their position in the crime insurance market. Therefore, such strategies adopted by key players propel the growth of the crime insurance market.
The COVID-19 pandemic had a positive impact on the crime insurance market size. The pandemic resulted in economic uncertainties and variability. There was increase in crimes, such as employee fraud and embezzlement. The pandemic impacted the growth of the crime insurance market by encouraging online activities thus increasing the chance of cyber-attacks and therefore pushing the growth of crime insurance market. Different government support programs were implemented to aid the pandemic situation for businesses. However, these implementations created chances for fraud and financial crimes, thus pushing crime insurance market growth.
The key players in the crime insurance market include JS Downey Insurance Service, Nationwide Mutual Insurance Company, Chubb, Morris & Reynolds Insurance, American International Group, Inc., HDFC ERGO General Insurance Company Limited, Allianz SE, The Guarantee Company of North America, The Travelers Companies, Inc. and AoN Plc. These players have adopted numerous strategies to increase their marketplace penetration and strengthen their position in the crime insurance market.
There has been a rise in cyber-crime at an alarming rate due to digitalization. Businesses have understood the importance of coverage against data breaches, ransomware attacks, and other cyber-attacks.
Fraud cover is the leading application of Crime Insurance Market
North America is the largest regional market for Crime Insurance
$13,678.56 million is the estimated industry size of Crime Insurance.
JS Downey Insurance Service, Nationwide Mutual Insurance Company, Chubb, Morris & Reynolds Insurance, American International Group, Inc., HDFC ERGO General Insurance Company Limited, Allianz SE, The Guarantee Company of North America, The Travelers Companies, Inc. and AoN Plc.re the top companies to hold the market share in Crime Insurance.
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