Estimated reading time: 5 minutes
Cyber Insurance Market – A Crossroads –
Howden’s data shows a sharp reset in cyber pricing momentum. “Rates have fallen significantly over the past three years, down 27% from mid-2022.” The analysis comes from Howden Re’s “Re-balancing: Howden’s 1.1.26 market report,” which maps 2025’s macroeconomic, geopolitical, and renewal trends across major lines. We drilled into the cyber insurance elements.
That decline follows a period of steep post-2020 price tightening. Howden describes “three distinct phases” for the growth of the cyber premium. The early phase relied on new buyers entering. Pricing stayed broadly stable then.
Howden says pre-2020 growth averaged 23% a year. Exposure growth did the heavy lifting. That pattern flipped hard from 2020 to 2022. Howden ties that hard-market surge to price alone. It cites annual price increases of about 70% then. It also cites total premium growth of 40%. Exposures contracted under tighter underwriting.
Now the cycle looks different. Howden says global growth cooled to 6% a year. US premiums look “broadly flat for the first time.”
Why Rates Fell, Even With Cyber Risk Raging
The report keeps the cyber risk threat picture front and center. It calls 2025 “another eventful year” for cyber insurance. It points to “high-severity ransomware attacks” as a defining feature.
Capacity still flowed into the class. Howden links that to “manageable losses” and competitive pressure. It notes several high-profile ransomware victims lacked full coverage. Some victims went uninsured or underinsured.
Underwriting performance also supported the softening. Howden reports “~US$9 billion in underwriting profit from 2022 to 2024.” That result strengthened carrier confidence. It also attracted more capacity.
Howden also points to better cyber risk controls among insureds. It ties improved controls to lower losses. That dynamic helped buyers. It also tightened margins for carriers.
Broader insurance forces also press on cyber. Inflation lifts claim costs across many lines. Geopolitical tension increases business disruption risk. Those same forces raise boards’ focus on operational resilience.
International Softening Outpaces The US
The report draws a clear split by geography. International markets drive most of the global decline. Howden calls conditions “highly favourable for buyers” outside the US.
It quantifies that gap. Howden cites a 20% average reduction since January 2024 internationally. It links the move to low losses and strong underwriting results.
The US tells a steadier story. Howden says US prices fell just 9% over the same period. It also says the market shows signs of stabilisation.
Privacy claims drive much of that restraint. Howden highlights “rising privacy-related claims” in the US. It ties the trend to US regulation and litigation. Carriers responded with tighter profit focus.
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Value Stays Clear for Buyers, Even In A Softer Market
Howden argues the product still delivers strong buyer value. It states: “protection more than pays for itself, generating a 19% return on investment.”
The report also credits cyber insurance with operational benefits. It links coverage to better hygiene and incident response. It frames insurance as part of resilience building.
That framing fits today’s risk landscape. The report describes more hybrid warfare activity. It lists “cyber attacks” among key threats on this battlefield. It also cites sabotage and misinformation campaigns.
What comes next in 2026
Howden sets a clear headline for the year ahead. “2026 looks set to be a pivotal year in the cyber market’s evolution.”
The near-term challenge sits with growth, not loss. Howden says the exposure base has not expanded fast enough. It says falling rates slowed premium growth to near standstill. That marks a reversal from prior years.
Howden expects an emerging US pricing floor. It ties the floor to privacy claim pressure and margin compression. That shift could slow further cuts. It could also push stricter risk selection.
International markets face a different mission. Howden calls for “accessing new risk pools” to restore growth. It points to two routes. Buyers can add limits or coverages. New buyers can enter through higher penetration.
Howden puts numbers on the task. It cites a market-wide premium target near US$20 billion by 2027. It says exposures must rise 15% annually to meet it.
Europe: The New Battleground
Howden highlights latent demand in France, Germany, Italy, and Spain. It notes non-buyers across revenue bands. It cites “41% of companies with revenue above €500 million” planning to buy within five years.
Howden frames this as a sales and education sprint. It calls for the market to “engage, educate and convert interest into uptake.” That message targets brokers and carriers alike.
Reinsurance capacity looks ready for that push. Howden says ample traditional and alternative capacity can support cedents. That supply could help fund expansion strategies. It could also support new structures.
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Cyber Insurance Market Watchpoints For Pricing, Product, and Distribution
Expect sharper segmentation in 2026 underwriting. Carriers will reward verifiable controls and clean claims histories. They will price privacy exposures with more caution.
Expect product design to carry more growth weight. Buyers will test broader coverages and higher limits. Insurers will aim to expand safely without margin collapse.
Expect distribution to matter more in underserved regions. The report signals strong opportunity outside the US. Lower coverage costs can unlock first-time purchases.
Other Report Notes In Brief
- Reinsurance pricing softened broadly at 1 January 2026 renewals. Property-catastrophe fell 14.7% on a risk-adjusted basis.
- Dedicated reinsurance capital hit record highs near US$501 billion by year-end 2025. Howden also cites an 8% year-on-year increase.
- Catastrophe bonds set another issuance record in 2025. Howden reports US$24.5 billion in new issuance.
Related Cyber Risk and Liability Insurance Posts
- Cowbell Names John Botros CFO as Cyber Liability Insurance Strategy Enters New Growth Phase
- The Grand Jury Says: Get Cyber Insurance
- Cyber Insurance Sunday – Upload
- SecondSight and Optiv Form a Strategic Cybersecurity Insurance Partnership
- Vanessa Maxwell Appointed Global Head of Cyber Insurance at Allianz Commercial
