The QualRisk Cyber Insurance Center (QCC) has released its 2025 Global Market Report, pointing to a major shift in the global cyber insurance market.
Premiums are projected to grow from US$15.1 billion in 2024 to US$27 billion by 2030, eventually reaching US$60 billion by 2040.
While the US still dominates with 70% of global premium, growth there has slowed, with a 2% year-over-year decline in 2024. Europe has emerged as the new engine of expansion, recording a 22% compound annual growth rate over the past three years. QCC said this represents a pivot point in the market, with Europe leading growth and Asia expected to play a greater role in the next phase.
Pricing trends show further stabilisation. The QCC Global Cyber Insurance Price Index fell to 269 in 2024, down from its 2022 peak of 340, reflecting the cooling of the ransomware-driven hard market of 2020 to 2022.
QCC’s expanded US analysis, using the updated NAIC cyber supplement data, highlights divergent strategies among leading carriers. Hartford Steam Boiler led the endorsements segment with US$75 million in premium and a 26% share. In the primary market, Chubb heads the top five carriers, which collectively hold 30% of market share, while the surplus lines segment is led by Starr, with the top five carriers controlling 26%. Some insurers, such as Arch, spread exposure across multiple segments, while others, including At-Bay in primary and Fairfax in surplus, focus on narrower plays.
The US personal cyber segment is expanding quickly, with QCC modelling the non-US personal market for the first time. Demand for household-level protection against identity theft, fraud and cyber extortion is expected to underpin further growth.
For insurers, the shift carries wider implications. Cyber remains one of the fastest-growing specialty lines, in contrast to directors’ and officers’ liability or professional indemnity, which have seen softening conditions. But capacity allocation is still a key concern, with many carriers balancing appetite against systemic risk exposures and uncertain aggregation potential. Reinsurers, who play a pivotal role in supporting market growth, remain cautious, with a focus on modelling improvements and tighter contract language.
Capital modelling also remains a hurdle. Regulators in Europe and the US are pressing for more robust assessments of extreme but plausible cyber events, forcing insurers to refine their scenarios and stress testing. As pricing continues to stabilise, growth is expected to come less from rate increases and more from deeper market penetration, product innovation and the development of global reinsurance structures that can support sustainable expansion.
QCC said future growth will depend on carriers’ ability to broaden uptake across regions, adapt coverage to evolving exposures, and address reinsurance and capital challenges while maintaining profitability.
