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AM Best keeps stable outlook for global cyber insurance market
AM Best estimates global cyber insurance premiums topped $16 billion in 2025, while U.S. direct written premium declined amid intensifying competition and ample capacity.
AM Best is maintaining a stable outlook for the global cyber insurance market segment, citing ongoing robust demand and favorable profitability over the intermediate term even as premium growth slows and competition intensifies, Risk & Insurance reports.
The rating agency said global cyber insurance premiums surpassed $16 billion in 2025, according to Munich Re estimates it cited, with growth weakening largely because of a decline in U.S. direct written premium tied to rising competition and abundant capacity.
AM Best pointed to a slight uptick in the loss ratio over the last three years, though it said the segment has remained profitable. It also described the market as increasingly buyer friendly, with negative rate changes since 2023, and it does not expect pricing to stabilize soon.
Risk & Insurance added that AM Best expects insureds to continue improving cyber hygiene, which has helped reduce potential losses through more robust defenses and quicker incident responses. It also noted some large organizations may shift cyber exposure toward single parent captive insurers, and that the U.S. remains the dominant market, accounting for more than half of global premiums, with the share potentially approaching 60% when including U.S. exposures within Lloyd's.