Cyber insurance rates dropped 5% in the US and 7% globally in Q4 2024, according to Marsh’s Global Insurance Market Index. The market benefited from abundant capacity, with new capital expected in 2025. Many companies reinvested premium savings into higher coverage limits and lower retentions.
Claim volume increased, with over 2,000 US cases related to privacy breaches, supply chain disruptions, and ransomware. While ransom demands rose, fewer companies opted to pay. Insurers focused on cybersecurity standards, aggregation risks, and regulatory developments.
In contrast to Cyber insurance rates Q4 2024, Marsh’s findings in other insurance sectors
Property Insurance Rates Decline Amid Increased Capacity
Property insurance rates fell 4%, an acceleration from Q3’s 1% drop. Increased capacity and competition drove declines, especially in high-risk areas like California and the Gulf Coast. Insurers showed more underwriting flexibility but scrutinized loss history and data quality.
Casualty Insurance Costs Rise Due to Litigation Trends
Casualty insurance rates increased 7%, driven by rising auto liability costs and large jury verdicts. Umbrella and excess liability premiums climbed 15%, down from Q3’s 21% increase.
Financial and Professional Lines Show Mixed Results
Directors and officers (D&O) insurance rates declined 5%. Errors and omissions (E&O) rates rose 1%, while financial institution coverage dropped 2%. Insurers tightened terms for high-risk industries due to legal and regulatory concerns.
Other News: Cyber Insurance Pays Back Only App. 60% of Ransomware Costs & Then Rates Go Up(Opens in a new browser tab)
