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AM Best keeps stable outlook for global cyber insurance market
AM Best estimated global cyber insurance premiums exceeded $16 billion in 2025, with growth slowing as U.S. direct written premium declined amid heightened competition.
AM Best has maintained a stable outlook for the global cyber insurance market, citing sustained demand and favorable profitability over the intermediate term, even as premium growth has softened and competition has intensified, according to Risk & Insurance. The agency also pointed to expanding use of artificial intelligence across underwriting, exposure modeling, and claims management.
Risk & Insurance reports that AM Best estimated global cyber insurance premiums surpassed $16 billion in 2025, based on Munich Re estimates. The same source said growth slowed compared with previous years, largely due to a drop in U.S. direct written premium tied to rising competition and abundant capacity.
AM Best noted a slight increase in the loss ratio over the last three years while emphasizing the segment has remained profitable, and said the market has become more buyer-friendly with negative rate changes since 2023. Rates are not expected to stabilize soon, it warned, though a sharper rise in the frequency or severity of claims could trigger a more noticeable upward price correction.
The outlet also said AM Best attributed part of the flat premium environment to insureds strengthening cyber hygiene, which improved defenses and helped reduce potential losses through faster incident responses. It added that some large organizations may be shifting cyber exposure toward single-parent captive insurers, and AM Best said the U.S. remains the dominant market with more than half of global premiums, potentially near 60% when including U.S. exposure within Lloyd’s.