Identity Theft Insurance Market Expected to Reach $2.09 Billion By 2030

According to a recent report published by Allied Market Research, titled, “Identity Theft Insurance Market By Type and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,” The global identity theft insurance market size was valued at $0.57 billion in 2020, and is projected to reach $2.09 billion by 2030, growing at a CAGR of 14.2 % from 2021 to 2030.

Increase in adoption of digital payments along with the rise in cybercrimes relating to digital payments drive identity theft insurance market growth. However, lack of awareness among of people and less popularity of identity theft insurance hamper the growth of the market. Moreover, increase in adoption of digital and electronic identification in developing countries is expected to provide lucrative opportunities for the market growth.

Furthermore, the global identity theft insurance market is in its developing phase, and exhibits high growth potential, due to rise in support and preventive measures taken by government in developing countries. For instance, adding identity insurance coverage to an existing home-owners insurance normally costs less than $50 per year, according to the Insurance Information Institute (Triple-I). In addition, increase in threats for digital identities and rise in frauds on the digital platform fuel the growth of the market.

By application, the individual segment acquired major share. It provides full cover to individuals against the frauds and thefts occurring under identity theft insurance drive the growth of identity theft insurance cost among individuals.

Region wise, North America dominated the market in 2020, and is expected to maintain this trend during the forecast period. In North America, the continued high speed of digital adoption, along with a rapid increase in digital ecosystem, is redefining the interaction between businesses and consumers. However, the increase in complexity of cyber-attacks, such as online fraud, need a corresponding reaction to ensure the security of personal data and protect the reputation of enterprises. This is expected to propel the identity theft insurance market trends in the region.

The demand for identity theft insurance has increased significantly during the COVID-19 pandemic. This is attributed to the surge in rate of cybercrimes during the pandemic, and increase in usage of digitalization from banking to work from home which has further increased the danger of hackers hacking sensitive data and identity theft issues of credit and debit cards. Therefore, these factors have positively impacted the growth of the identity theft insurance industry during the pandemic situation.    

Key Findings Of The Study

• By type, the credit card fraud segment led the highest identity theft insurance market share, in terms of revenue in 2020.
• By application, the business segment is expected to exhibit the fastest growth rate during the forecast period.
• By region, North America generated the highest revenue in 2020.  

The key players operating in the identity theft insurance market analysis include Allstate Insurance Company, Aura, Chubb, Experian, GEICO, IdentityForce, Inc., IDShield, McAfee, LLC, NortonLifeLock Inc., and Nationwide Mutual Insurance Company. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.