Financing for cyber in the managing general agent (MGA) sector has continued to soften, with fewer deals and smaller average funding rounds, according to the latest insights from the QualRisk Cyber Insurance Center (QCC).
In its 2026 Cyber MGA Periscope, QCC revealed that publicly disclosed funding in 2025 reached US$49 million, down from US$87 million in 2024. Strategic acquisitions and roll-ups have accelerated, as sponsors and carriers seek scale, diversification, and operating leverage.
According to Daniel Kasper (pictured above), CEO of QCC, “MGAs remain pivotal in the cyber insurance sector, but our 2026 Cyber MGA Periscope reveals a clear trend towards consolidation, typified by Zurich’s acquisition of Canadian MGA BOXX Insurance.”
European markets have become a focus for leading MGAs, with many moving into Germany and France to target mid-market and specialty lines. The report also notes that market participants are preparing for expansion into Asia, positioning themselves in key hubs as capacity, distribution, and data infrastructure develop.
Kasper noted that with ransomware incidents increasing, competition between MGAs and traditional carriers is intensifying.
“We anticipate the recent wave of US MGA expansion into Europe will continue into Asia in 2026. In this changing landscape, carriers, investors, and MGA leaders must reevaluate their strategies and regional priorities to maintain a competitive edge,” he said.
Over the past decade, MGAs dedicated to cyber insurance have grown in response to rising cyber-crime. Increased premiums in recent years have contributed to the rapid expansion of MGAs, which now underwrite roughly a third of global gross written cyber premiums.
The current market environment is also being shaped by a notable softening in cyber insurance rates. Increased capacity and heightened competition among MGAs and carriers have led to lower premiums, but industry leaders caution that this pricing shift does not reflect a reduction in risk.
Instead, the sector is facing a paradox: while premiums are dropping, AI-driven threats are evolving rapidly, often outpacing the security controls that many insureds have in place. This disconnect has prompted concerns that underwriting discipline may be challenged as firms compete for market share, potentially impacting the long-term stability of the sector.
The evolving threat landscape is also evident in the nature of claims being reported. In the first half of 2025, social engineering attacks accounted for 57% of incurred cyber claims and 60% of losses. The increasing use of AI-generated audio and video has allowed attackers to bypass traditional technical defences, making it more difficult for organisations to prevent these incidents.
This trend is prompting MGAs and insurers to reassess their underwriting and risk management strategies as they respond to the changing tactics of cybercriminals.
