Global cyber insurance premiums increase 7% in 2024: NAIC

Global cyber insurance premiums reached nearly $15 billion in 2024, a 7% increase from the previous year, according to a report Monday from the National Association of Insurance Commissioners.

U.S. cyber insurance premiums, however, fell for the first time, down 7% in 2024 to $9.14 billion, while the number of claims rose 49% with nearly 50,000 reported.

U.S. domiciled insurers reported $7.08 billion in direct written premium, down “slightly” from the $7.25 billion reported in 2023, the report said.

Cyber insurance rates in the U.S. declined an average of 5% in the fourth quarter of 2024, the first quarterly decrease following seven years of rate increases.

The number of policies in force slipped 0.03% to 4,368,614 in 2024, the report said.

By type, endorsement policies represent the largest class of coverage, accounting for 55.1% of all active policies. Primary policies represent 41.6% of policies in force, and excess policies 3.3%.

Primary policies generate 65% of cyber premiums, excess policies 31% and endorsement policies 4%.

Based on U.S. state market share by direct written premium, the top five states – Delaware, 17.69%; Illinois 15.63%; Connecticut 12.91%; Texas 9.70%; and Pennsylvania 8.60% – account for 64% of the U.S. market.

Reinsurance has played a “pivotal role” in expanding the capacity of the cyber insurance market, the report said.