Cyber Insurance Industry Statistics 2026: Premiums and Loss Ratios

Global cyber insurance premiums totaled nearly $15 billion in 2025 by Munich Re’s estimate, with around $28 billion expected by 2030. According to AM Best, 2025 US cyber premiums reached $7.5 billion, up from $7.1 billion in the prior year. AM Best attributes the gain mainly to companies moving some cyber business from offshore to US-domiciled entities. These cyber insurance industry statistics show a market still growing worldwide but flat in its largest country.

The industry-wide US cyber loss ratio rose 4.3 points to 53.0% in 2025, its second consecutive increase. Marsh recorded a 4% global decline in cyber insurance rates in Q2 2026, the twelfth consecutive quarter of declines. Losses are rising while prices fall, and the figures below track that squeeze across premiums, carriers, claims, ransomware and reinsurance.

Key Takeaways

• US domestic insurers wrote an average of $1,621 in cyber premium per policy in force in 2024, across 4,368,614 policies.
• The US cyber loss ratio reached 53.0% in 2025, the first time above 50% since the ransomware spike of the COVID era.
• NAIC data shows US cyber claims closed without payment (28,555) were nearly three times the claims closed with a payment (9,941) in 2024.
• Delaware, Illinois, Connecticut, Texas and Pennsylvania together held more than 64% of US cyber direct written premium in 2024.
• Beazley’s cyber undiscounted combined ratio rose to 91.7% in the first half of 2026 from 79.7% a year earlier.
• Coalition data shows a record 86% of businesses refused to pay ransom demands in 2025, even as initial ransom demands rose 47% year over year.

Editor’s Choice

• Global cyber insurance premiums, 2025: nearly $15 billion.
• Projected global cyber premiums by 2030: around $28 billion.
• US cyber insurance premiums, 2025: $7.5 billion.
• US direct written premium including alien surplus lines, 2024: $9,143,618,143.
• US cyber policies in force, 2024: 4,368,614.
• Average ransomware claim loss at Coalition, 2025: $269,000.

Cyber Insurance Industry Statistics: Global Market Size

• According to Munich Re estimates, the global cyber insurance market totaled nearly $15 billion in 2025, after premium growth slowed over the past three years.
• According to the National Association of Insurance Commissioners (NAIC), global cyber premiums reached nearly $15 billion in 2024, a 7% increase from the previous year, with most of the growth outside the US.
• Jürgen Reinhart, Munich Re’s Chief Underwriter Cyber, puts the global market at nearly $16 billion this year.
• Reinhart expects the German cyber market to grow by around 15% per year and to double every five years.
• Munich Re’s 2026 survey drew on over 9,500 respondents across 20 countries.

Source: National Association of Insurance Commissioners 2025, Munich Re 2026

About This Data

Figures come from 12 sources published between 2025 and August 2026. They include 3 regulator and government reports, from the NAIC, the Government Accountability Office and the FBI. The rest are 1 rating agency report (AM Best) and 8 insurer, reinsurer and broker publications. Some figures are third-party data relayed in NAIC reports. Figures are reviewed on a rolling basis and updated when sources publish new editions.

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US Cyber Insurance Direct Written Premium by Year

• US direct written premium fell to $9,143,618,143 in 2024, a 7% decrease from $9,843,441,133 in 2023, the market’s first ever reduction.
• Premium growth peaked at nearly 61% year over year in 2021, slowed to 1.62% in 2023 and turned into a 7.11% decline in 2024.
• US-domiciled insurers alone reported $7,082,935,371 in direct written premium for 2024, down from $7,248,231,390 in 2023.
• Excluding alien surplus lines, the domestic market grew 75.3% in 2021 and declined 2.3% in 2024.
• AM Best reports $7.5 billion of US cyber premium in 2025, describing flat or very little growth in the segment’s US premium.
• AM Best associate director Fred Eslami noted that “large companies, with mature captive insurers and sophisticated cyber risk mitigation practices, have moved away, in part or entirely, from the commercial market and insured their cyber exposure via their captives”.

Recent Developments

• August 19, 2026: Munich Re agreed to acquire At-Bay at an enterprise value of $575 million, with closing expected in the first quarter of 2027.
• August 5, 2026: Beazley’s Cyber Risks written premiums fell to $524.9 million in the first half of 2026 from $620.3 million a year earlier.
• August 5, 2026: Beazley reported a cyber rate change of -4.3% for the first half of 2026, against -6.5% in the same period of 2025.
• July 23, 2026: Marsh reported that cyber insurance rates declined 4% globally in Q2 2026, following a 5% decrease in Q1.
• July 23, 2026: Marsh’s index showed US cyber rates down 2% in Q2 2026, a smaller cut than the 4% global decline.

Admitted vs Surplus Lines Cyber Premium

• Domestic surplus lines insurers wrote $4,345,761,561 in cyber direct written premium in 2024, against $2,737,173,810 for admitted insurers.
• Surplus lines premium stood at $609,758,664 in 2019 before climbing to $4,374,941,629 in 2023.
• Surplus lines carriers accounted for 61.36% of domestic cyber premium in 2024.
• Domestic surplus lines insurers wrote 47.53% of total US cyber direct written premium in 2024, including alien surplus lines.
• AM Best says surplus lines insurers now have almost two-thirds of all cyber insurance by premium.

Cyber Insurance Loss Ratios and Profitability

• The industry-wide US cyber loss ratio ticked up 4.3 points to 53.0% in 2025, marking its second consecutive increase.
• The incurred loss ratio for surplus lines carriers was 55.9%, against 50.2% for admitted carriers.
• Since 2021, the paid loss ratio for surplus lines carriers has remained below that of admitted carriers.
• AM Best senior industry analyst Christopher Graham said “this time the loss ratio increase is occurring as pricing is still declining and even accelerating the decline”.
• Howden data cited by the NAIC shows robust global cyber underwriting profitability, with combined ratios averaging 70%.
• Beazley’s Cyber Risks undiscounted combined ratio reached 91.7% for the six months to June 30, 2026, against 79.7% a year earlier.

Why it matters: AM Best’s analysts note that the 2025 loss ratio climbed to 53.0% while cyber pricing was still declining, unlike the COVID-era ransomware surge that triggered immediate price increases. A rising loss ratio without a pricing response leaves carriers absorbing the gap through margin, which is the pressure Beazley’s combined ratio now shows.

Top Cyber Insurance Carriers by Direct Written Premium

• Chubb ranked first among insurer groups in the NAIC’s domestic Cyber Supplement data in 2024 with $560,634,065 in direct written premium and a 7.92% market share.
• St Paul Travelers moved from fourth to second with $535,426,655 and a loss ratio of 53.97%.
• At Bay Specialty rose from 32nd in 2023 to seventh in 2024 with $280,601,661 of premium.
• The top 20 groups held a cumulative 76.24% of domestic direct written premium, with Ascot in 20th place at $156,769,170.
• Counting defense and cost containment (DCC) expenses, loss ratios with DCC among the top 20 groups ran from 9.24% at Beazley to 96.26% at Starr.

Source: National Association of Insurance Commissioners 2025

Cyber Premium and Policies by Policy Type

• Primary policies generated 65% of 2024 cyber direct written premium, excess policies 31% and endorsement policies 4%.
• Endorsement policies made up 55.1% of all active cyber policies in 2024, followed by primary policies at 41.6%.
• The NAIC describes endorsement policies as high-volume but low-premium products, and excess policies as low-volume but high-premium products.
• AM Best identifies a pair of distinct sub-markets: surplus lines carriers writing primary and excess cyber-specific policies, and a market focused on endorsements to commercial policies.

Cyber Insurance Policies in Force

• US cyber policies in force totaled 4,368,614 in 2024, down slightly by 0.03% from the year prior.
• The number of policies grew 11.7% in 2023 to a peak of nearly 4.4 million.
• Policies in force fell 6.8% in 2021 before adoption rebounded.
• The NAIC reads the 2024 plateau in policy count as a sign that the market has reached a new stage of maturity in terms of customer adoption.

How much does a cyber insurance policy cost on average?

US domestic cyber premium averaged $1,621 per policy in force in 2024, from $7,082,935,371 of premium across 4,368,614 policies. That average blends low-cost endorsements, which are more than half of all policies, with expensive excess layers, so a stand-alone primary policy costs more than this figure on average.

Cyber Insurance Claims Volume and Closure Rates

• The number of US cyber claims rose almost 40% in 2024, with nearly 50,000 reported.
• Endorsement policies had the highest claim closure rate at 91.52%, ahead of primary and excess policies.
• Claims closed without payment (28,555) were nearly three times higher than those closed with a payment (9,941).
• On excess policies, claims closed without payment outnumbered paid claims by a ratio of more than 20-to-1.
• First-party claims make up 62% of all actively managed claims in Munich Re’s portfolio.
• Munich Re claims data shows a ratio of 3 to 1 for malicious and non-malicious loss events.

Source: National Association of Insurance Commissioners 2025

Key finding: NAIC data shows that across all policy types, 28,555 cyber claims were closed without payment against 9,941 closed with one. Most reported incidents never turn into a paid loss, so claim counts alone overstate how much of the rising frequency reaches insurers’ loss ratios.

Ransomware and Funds Transfer Fraud Claims

• Coalition reports that initial ransom demands in 2025 rose 47% year over year, while a record 86% of businesses refused to pay.
• Ransomware was the most costly type of claim at Coalition in 2025, with an average loss of $269,000.
• Business email compromise and funds transfer fraud accounted for 58% of the cyber incidents Coalition observed, and 52% of funds transfer fraud claims originated from business email compromise.
• Coalition’s overall claims frequency rose 3% in 2025, while claims severity fell 19% to an average loss of $116,000.
• Funds transfer fraud made up 27% of claims, with an average loss of $141,000, and Coalition clawed back $21.8 million in stolen funds.
• Dual extortion ransomware accounted for 70% of Coalition’s ransomware claims in 2025.
• In 2025, 64% of closed claims at Coalition were resolved with no out-of-pocket loss for the policyholder.
• Aon’s US broking clients saw average ransom payments drop by 77% in 2024.

Business Email Compromise and Cybercrime Losses

• The FBI’s Internet Crime Complaint Center reports that it received 1,008,597 complaints in 2025 covering $20.877 billion in losses, a 26% increase from 2024.
• Cyber-enabled fraud accounted for $17.697 billion in losses, or 85% of all 2025 losses.
• Investment fraud accounted for $8,648,617,756 of 2025 reported losses and business email compromise for $3,046,598,558, ahead of tech support scams at $2,134,675,818.
• Business email compromise complaints rose to 24,768 in 2025 from 21,442 in 2024.
• Ransomware complaints reached 3,611 in 2025, up from 3,156 in 2024 and 2,825 in 2023.

Cyber Insurance Premium by State

• Delaware held the largest share of 2024 cyber direct written premium at 17.69%, or $1,182,868,526.
• Illinois followed at 15.63%, then Connecticut at 12.91%, Texas at 9.70% and Pennsylvania at 8.60%.
• Those five states represented more than 64% of the entire US market.

Source: National Association of Insurance Commissioners 2025

Cyber Insurance Rates and Pricing Trends

• Cyber insurance rates declined 4% globally in Q2 2026, the twelfth consecutive quarter of declines.
• Marsh groups India, the Middle East and Africa as IMEA, and Latin America and the Caribbean as LAC. The largest cyber decline was in IMEA, at 14%, followed by reductions ranging from 10% in LAC to 2% in the US.
• Global commercial insurance rates fell 6% on average in Q2 2026, following a 5% decline in Q1.
• NAIC data shows US cyber rates declined an average of 5% in the fourth quarter of 2024, the first quarterly decrease following seven years of rising rates.
• Howden data cited by the NAIC shows global cyber rates declined 22% from their mid-2022 peak, while annual premium growth slowed to 6% over 2022 to 2024.

By the numbers: Howden data cited by the NAIC shows annual cyber premium growth slowing to 6% over 2022 to 2024, down from a compound annual growth rate of nearly 40% during the 2020 to 2022 hard market. The soft market now runs alongside a rising loss ratio, so price cuts are no longer funded by the excess margin of the hard years.

Cyber Reinsurance and Market Concentration

• The top five reinsurers underwrite approximately 62% of cyber gross written premiums, and the top ten account for 87% of the market.
• Munich Re generated $1.7 billion in cyber insurance premiums in 2025, split equally between primary insurance and reinsurance.
• At-Bay, the cyber insurtech Munich Re agreed to buy, is a top-10 US cyber insurer with gross written premiums of $278 million.

Source: National Association of Insurance Commissioners 2025, Munich Re 2026

Cyber Risk Perception and the Protection Gap

• Cyber incidents ranked as the top business risk in the Allianz Risk Barometer 2026 for the fifth time in a row, with 42% of responses globally.
• Artificial intelligence risk was the biggest riser, jumping from #10 to #2 with 32% of responses.
• Natural hazard losses reached $224 billion in 2025, of which $108 billion was covered by insurance.
• The Government Accountability Office (GAO), reviewing the Terrorism Risk Insurance Act (TRIA), notes that Treasury clarified in 2021 that the Terrorism Risk Insurance Program can cover terrorism losses on eligible cyber policies.

Source: Allianz Commercial 2026, Munich Re 2026

Worth noting: GAO says certifying cyberattacks under TRIA can be challenging, and the Cybersecurity and Infrastructure Security Agency and the Federal Insurance Office have not completed an assessment of whether cybersecurity risks warrant a specific federal insurance response. Until that assessment exists, catastrophic cyber losses sit largely with private capital and the concentrated reinsurance panel shown above.

Conclusion

Global cyber premiums reached nearly $15 billion by Munich Re’s latest annual estimate. AM Best’s latest annual figures put the US cyber loss ratio at 53.0%, a second consecutive increase. Rate cuts that continue into a rising loss ratio leave less room for further cuts, and Beazley’s premium pullback shows at least one large cyber writer choosing margin over volume.

The next markers are the NAIC’s next supplement report, Marsh’s next quarterly index and whether more carriers trade premium for margin. A few insurer groups write most of the premium and a few reinsurers write most cyber reinsurance, so one large event would test the whole chain at once. State shares show where premium is booked, not where the insured risk sits.