Cyber Premiums Drop 6% in 2024 Amid Pricing Weakness
According to Fitch Ratings, cyber insurance premiums in the U.S. dropped 6% in 2024, marking a second consecutive year of declines. This after surging 160% between 2020 and 2022. Despite the dip, the sector continues to generate substantial profits. Demand for cyber coverage remains high. However, lower pricing and reduced policy issuance have limited the market’s growth.
“Cyber insurance…continues to evolve at slower pace…”
Gerry Glombicki, Fitch ratings
Market Maturity and Data Changes Complicate Comparisons
Fitch describes cyber insurance as still evolving. Senior Director Gerry Glombicki noted it lags behind the pace of cyber threats. He said the market remains immature and cautious.
“Cyber insurance, while not in its infancy, remains a very immature product that continues to evolve at slower pace than the underlying risk as insurance companies carefully navigate the risk landscape,” said Glombicki.
In 2024, insurers began using refined data classifications, separating premiums into primary, excess, and endorsements. This change complicates year-over-year comparisons but does not alter total premium trends.
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Top 10 Insurers Hold Steady Market Share
The top 10 U.S. cyber insurance carriers maintained a 51% share of direct written premiums in 2024, nearly identical to 2023. While the composition of top carriers changed slightly, overall dominance remained stable.
U.S. Remains Dominant Market
The U.S. continues to lead globally in cyber insurance, supported by data reporting that began in 2015. Fitch’s full report offers further breakdowns and historical insights.
Other Cyber Insurance Premiums News: What? Cyber Insurance Premiums Dropped For First Time in 2023: Fitch(Opens in a new browser tab)
