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Growth Slows Despite Rising Cyber Threats
Slowing growth comes to the cyber insurance market, according to Swiss Re’s latest report. That sluggishness comes despite rising global cyber risks. Premium growth has declined from double-digit expansion in 2017–2022 to single-digit growth today. Global premiums are expected to reach USD 15.6 billion in 2025. The compound annual growth rate estimate now sits at 5%, down from earlier forecasts of 6%.
The report states, “The ambitious exponential cyber growth forecasts frequently circulated in the industry are unlikely to materialise. This isn’t the first time Swiss Re has tempered its forecast. In November of last year, we reported its prediction growth of “just” 8% from 2024 to 2025.
Global cyber insurance premium by underwriting year (bn USD)
North America Dominates, But Untapped Markets Await
North America remains the most significant cyber insurance market, with a 66% share, or USD 10.28 billion in premiums. Europe follows with 21%, while the Asia-Pacific region claims 10%. Latin America and the Middle East remain small players but show long-term promise.
Price Competition Erodes Growth
Fierce competition has forced insurers to cut rates for three years in a row. Premium reductions now cancel out much of the organic growth from new buyers. Insurers have responded with concessions on coverage, limits, and security requirements. Experts warn that continued rate cuts could weaken the market’s ability to withstand systemic cyber losses.
Our Past Reporting on The Cyber Insurance Market
Below you can see rates of growth from numerous other reports we covered.
| Source | Estimated 2024–2025 Base | Forecast Year | Forecasted Market Size | CAGR |
|---|---|---|---|---|
| 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% |
SMEs Cyber Protection Gap
Small and medium-sized enterprises (SMEs) make up 90% of all global businesses but often lack cyber insurance coverage. Penetration among SMEs is estimated at only 10–20%. For micro-SMEs, the rate is even lower at 5–10%. Today, SMEs account for 30% of global cyber premiums, or USD 4.7 billion.
Five Levers for SME Growth
- Education – Campaigns to raise awareness of cyber risk and train brokers.
- Product Design – Simple, affordable, modular policies tailored to SME needs.
- Pricing – Lower-cost structures supported by risk management services.
- Underwriting – Automated, tech-driven processes to simplify applications.
- Distribution – Digital platforms and bundled products for easier access.
Together, these could bridge the SME cyber protection gap and unlock fresh growth for insurers.
Reinsurance as a Safety Net
Expanding SME cyber insurance coverage also introduces new risks. With more SMEs coverage, systemic loss potential increases. Are there ever truly “win-win” situations? Reinsurers play a vital role in absorbing these risks. Swiss Re emphasizes its global Cyber Data Lake and regional underwriting teams as tools to manage exposures and support insurers in entering new markets.
A Market at a Turning Point
Swiss Re notes that the cyber insurance market remains attractive, but expansion needs to align with reality. Exponential growth projections are fading, but opportunities exist in SMEs and new geographies. A stable rate environment, more innovative product design, and broader education campaigns could set the industry back on a sustainable growth track.
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