Cyber insurance market grows 7% to $15b in 2024

Despite softer demand and rising competition, the sector remained profitable.

The global cyber insurance market grew 7% in 2024 to nearly $15b in premiums, but momentum has slowed for the second straight year, according to Moody’s Ratings. 

Growth was concentrated in non-US regions, whilst US premiums fell 1.5% to $7.1b, following a 0.7% decline in 2023.

Despite softer demand and rising competition, the sector remained profitable in 2024, with combined ratios of 79% for primary cyber and 84% for excess coverage. 

Ransomware continues to drive most claims, though total ransom payments fell 35% last year to $814 million.

Competition has pushed prices lower, with Marsh data showing US cyber rates down 7% in the first half of 2025, whilst

UK rates fell nearly 19% in the same period. Some insurers are adjusting strategies, shifting from quota share to excess-of-loss reinsurance, and exploring catastrophe bonds and industry loss warranties to spread systemic risks.

Moody’s noted that penetration amongst large corporations is high, but only about 10% of SMEs buy cyber cover. 

Longer-term growth prospects remain strong as cyber incidents are ranked the top global risk for the fourth consecutive year in Allianz’s 2025 Risk Barometer.