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We routinely report on cyber insurance market size estimates and related industry studies from various insurance and research companies; see a summary table at the bottom of this post. But two new studies released on the same day (10/23/25) demonstrate the challenges of evaluating this market. One study, Marsh’s Global Insurance Market Index, reports global cyber insurance rates declined 6% in Q3 2025. But on the same day, Research and Markets asserted the cyber insurance market is growing rapidly and will continue to ramp at an 11.7% CAGR (Compound Annual Growth Rate).
Why are Cyber Insurance Rates Dropping?
Marsh reports that cyber insurance rates fell across all regions in Q3 2025, with Europe experiencing the largest decline at 12%, followed by Latin America and the Caribbean (LAC) and the UK at 11% each, and the Pacific at 10%. This reflects increased insurer competition, favorable reinsurance pricing and ample market capacity, according to the insurance broker and risk advisor. John Donnelly, Marsh’s President of Global Placement, noted, “Clients are benefiting from lower rates and opportunities to negotiate improved terms and broader coverage.” These trends are expected to persist absent significant disruptions. A recent report from Gallagher supports this analysis.
Market Size Growing While Rates Decline?
Research and Markets predicts the cyber insurance market is growing rapidly and will reach $44.67 billion by 2032. “This strong upward trajectory is fueled by accelerated digital transformation, increased use of cloud services, and the spread of interconnected ecosystems, all of which drive demand for comprehensive cyber risk solutions. Emerging regulatory requirements and evolving cyber threats are compelling organizations across all industries to seek financial instruments that effectively manage exposure and promote robust security postures,” according to the report, which generally agrees with other bullish estimates on the market (see table below.)
Why Cyber Insurance Rates Can Drop Amid Market Growth
The global cyber insurance market is expanding despite declining rates in part because lower cyber insurance rates are driving higher policy adoption and premium volume, the studies suggest. Increased competition from new insurers and capital influx, particularly after growth years from 2021-2023, have boosted capacity, making coverage more affordable. Small and medium-sized enterprises (SMEs), which make up 90% of global businesses, are increasingly purchasing policies as rates drop, significantly growing market penetration.
What Are the Prospects for Future Growth?
In its recent white paper, Cyber Insurance 2030: Charting a Course for Growth, Lockton Re calls the cyber liability market one of the “stand-out successes of property and casualty insurance in the last couple of decades.” The report cites years of compound annual growth rates above 20%, and at times over 30%, as evidence of resilience. Estimates put global premiums between $30 billion and $40 billion by 2030. “The cyber market is anticipated to more than double by 2030. Even conservative estimates suggest significant continued growth,” the report states.
But Lockton Re cautions that the expansion is “not inevitable” and will instead rely on “a series of deliberate actions,” where regulatory momentum, investor appetite and industry innovation must align to sustain the next decade of expansion.
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Cyber Insurance Market Updates and Reports
| Source* | Estimated 2024–2025 Base | Forecast Year | Forecasted Market Size | CAGR |
|---|---|---|---|---|
| Research and Markets | $20.6B (2025) | 2032 | $44.7B | 11.7% |
| Gallagher | >$20B (2025; imputed) | 2032 | $120.47B | 24.5% |
| HTF | $12.3B (2025) | 2033 | $52.1B | 19.7% |
| MarketsandMarkets | $16.5B (2025) | 2030 | $32.2B | 14.2% |
| Munich Re | $15.3B (2024) | 2030 | “More than double” | >10% |
| Fortune Business Insights | $20.9B (2024) | 2032 | $120.5B | 24.5% |
| IMARC/InsuranceAsia | $14.2B (2024) | 2033 | $73.5B | 17.9% |
| Market.us | $13.3B (2023) | 2032 | $62.7B | 18.8% |
| SkyQuest | $16.8B (2024) | 2032 | $71.8B | ~18% |
| InsuranceNewsNet | $13.1B (2024) | 2032 | $68.4B | 22.9% |
| *Figures rounded. |
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