The global cyber insurance market is displaying a mixed bag of results in 2024, achieving a 7% growth to nearly $15 billion in premiums. However, this upward trajectory comes with a caveat: the momentum has decelerated for a second consecutive year, according to a recent analysis by Moody’s Ratings.
Interestingly, while growth thrives in regions outside the United States, the American sector is seeing a decline, with premiums dropping 1.5% to $7.1 billion, following a slight dip of 0.7% in 2023. Despite these challenges, the sector has maintained its profitability, demonstrating combined ratios of 79% for primary cyber coverage and 84% for excess coverage.
Ransomware attacks continue to dominate the claims landscape, although the total ransom payments slipped by 35% last year to a still-staggering $814 million. Such a significant drop raises eyebrows: are cybercriminals still plotting, or is the market growing more resilient?
The rising competition within the sector has led to a reduction in prices. Marsh’s data reveals that U.S. cyber insurance rates fell by 7% during the first half of 2025, while the UK experienced a sharp decline of nearly 19%. In response to this dynamic environment, some insurers are pivoting their strategies, transitioning from quota share to excess-of-loss reinsurance, and exploring innovative options such as catastrophe bonds and industry loss warranties to mitigate systemic risks.
Moody’s highlights that while penetration among large corporations remains strong, only about 10% of small and medium-sized enterprises (SMEs) are investing in cyber coverage. This suggests a vast pool of untapped potential that could contribute to future growth. Indeed, Allianz’s 2025 Risk Barometer ranks cyber incidents as the top global risk for the fourth year running, signaling that the appetite for cyber insurance could increase as awareness grows.
Which regions are driving growth in the cyber insurance market?
Growth is particularly strong in non-US regions, while the US is experiencing a downturn in premium volumes.
What is contributing to the decrease in ransom payments?
The total ransom payments fell by 35% last year to $814 million, indicating a possible shift in the strategies employed by cybercriminals or improvements in defenses.
What does the future hold for the cyber insurance sector?
Long-term growth prospects remain robust, especially with only 10% of SMEs currently covered, suggesting significant room for expansion as cyber threats continue to evolve.
