The cyber insurance market expanded to $7.15 billion in 2024, driven by SME adoption, regulatory mandates and improved incident response. After two years of steep rate hikes, pricing largely flattened in H2 2024 as loss ratios improved and new capacity entered from reinsurers and London markets. Buyers shifted to higher limits for business interruption and extortion, while demand for third-party liability rose with data protection enforcement. Underwriters continued to require controls such as MFA, EDR, privileged-access management and vendor-risk programs; firms without these saw higher deductibles and coverage sub-limits. Claims frequency remained high for ransomware and vendor-related outages, but severity moderated due to better backups and negotiated ransom policies. Policy wording tightened around “war” and “systemic event” exclusions, though some insurers introduced affirmative cover with aggregate caps. Analysts expect mid-teens premium growth in 2025, more parametric options, and broader take-up among healthcare, manufacturing and public sector entities.
