Gallagher Re launches Cyber RAR Index, revealing 100% growth since 2020
- August 31, 2025
- Posted by: Kane Wells
- Category: Insurance
Reinsurance broker Gallagher Re has launched its Cyber Risk Adjusted Rating (RAR) Index, revealing that its value was 100% higher on January 1, 2025, compared to January 1, 2020.
The Gallagher Re Cyber RAR Index is a measure of the change in reinsurance prices adjusted for expected changes to the underlying level of risk.
“Unlike property where limit is directly correlated to risk, a cyber reinsurance rating index requires us use our proprietary view of risk (VoR) which includes considerations for underlying rate change, loss trend, selection of volatility parameters and catastrophe model selection,” Gallagher Re explained.
According to the firm, it is the consistency of its approach that enables it to credibly track the reinsurance rating environment year on year.
The Cyber RAR Index value saw a significant increase of 62% from 2020 to 2021, followed by a slightly higher growth of 63% between 2021 and 2022.
However, the growth rate slowed considerably to 16% from 2022 to 2023 before shifting downward. From 2023 to 2024, the Index value declined by 16%, and the downward trend continued into 2024 to 2025, with a further decrease of 22%.
As mentioned, the Cyber RAR Index was 100% higher on January 1, 2025, compared to January 1, 2020, though it was 34% lower than its peak on January 1, 2023.
Ian Newman, Global Head of Cyber, Gallagher Re, commented, “While it has performed well in recent years, the cyber market continues to grow and the risk landscape is evolving rapidly.
“Cyber is also a CAT and systemically exposed class, and reinsurance buyers are constantly looking for suitable and effectively priced non-proportional protection.
“Gallagher Re therefore believe that over the long-term, an index of the Cyber Aggregate Excess of Loss market will provide a useful and insightful barometer as to the state of the cyber reinsurance rating environment.”
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