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AM Best keeps stable outlook for global cyber insurance
Global cyber insurance premiums surpassed $16 billion in 2025, but growth slowed as competition intensified and U.S. direct written premium declined.
AM Best has maintained a stable outlook for the global cyber insurance market, citing what it called robust demand and favorable profitability over the intermediate term, even as premium growth softens.
The ratings agency pointed to expanding use of artificial intelligence in underwriting, exposure modeling, and claims management, while also noting that competition and abundant capacity have made the market more buyer-friendly.
According to estimates from Munich Re cited by AM Best, global cyber insurance premiums rose above $16 billion in 2025, though growth slowed versus prior years because U.S. direct written premium fell amid rising competition.
AM Best also said the segment has remained profitable despite a slight uptick in the loss ratio over the past three years, and it warned that cyber pricing is not expected to stabilize soon unless claim frequency or severity increases more sharply.