Swiss Re projects global cyber insurance premiums will reach US$15.6 billion in 2025 and US$16.4 billion in 2026, with the sector’s growth outlook revised to a 5% compound annual growth rate from 2023.
North America holds 66% of the market, followed by Europe at 21% and Asia-Pacific at 10%. Small and medium-sized enterprises (SMEs) and micro-SMEs account for about 30% of global cyber premium, or US$4.7 billion.
In the US, the cyber insurance market experienced its first decline in premium volume since 2018. According to a recent report, admitted direct written premiums fell 2.3% in 2024 to US$7.1 billion. Analysts see this as a turning point, reflecting a slowdown in new policy uptake and a shift by insurers to focus on sustainable underwriting rather than rapid expansion.
The broader US cyber insurance market, which includes non-admitted and alien insurers, is estimated at US$10.5 billion. Much of this market is controlled by a handful of large carriers, with the top groups dominating admitted premium.
Despite a fast-evolving threat landscape, Swiss Re’s analysis notes that growth in the cyber insurance market is slowing. This marks the third consecutive year of rate deterioration, leading to the downward revision in growth estimates.
Fabian Willi (pictured above, left), head cyber key accounts at Swiss Re, said, “Despite increasing cyber risk, rate deterioration for the third straight year is neutralizing the organic exposure growth the market has worked hard to build.”
Willi added that pricing stability and expansion into new customer segments are necessary for the market’s sustainability.
Underinsurance remains a key challenge in the cyber insurance industry, especially among smaller businesses. S&P Global Ratings and other specialists report that many SMEs remain uninsured or underinsured, despite their vulnerability to cyber threats.
The protection gap is particularly pronounced in this segment, highlighting the need for tailored, accessible products and smarter distribution models to address the needs of smaller firms.
Swiss Re also identifies the SME segment as a key area for future growth. Dani Tobler (pictured above, right), head cyber reinsurance at Swiss Re, described SMEs as “cyber’s biggest open runway.”
Tobler said, “SMEs do not need scaled-down corporate policies, they need tailored, accessible products and smarter distribution models.” As more SMEs obtain cyber coverage, the role of reinsurance will become increasingly important for managing accumulation risk and supporting data-driven growth.
What are your thoughts on this story? Please feel free to share your comments below.
