In its latest insights, Gallagher Re is encouraging cyber insurers to look beyond established markets and seek growth in international and alternative cyber product segments.
The firm notes that while some carriers are still searching for easy wins, the industry should focus on developing new business lines and regions to support market expansion and diversification.
Jennifer Braney, head of international cyber for Gallagher Re, likened the current environment to gold mining.
“Prospectors panning for gold in a stream may discover nuggets easily, but eventually those will run out. To find more substantial gold deposits, you must dig underground, which is harder and requires more time and creativity,” she said.
Gallagher Re’s previous outlined that the cyber insurance market is positioned for significant growth, with US buyers currently accounting for about two-thirds of global demand.
However, the global cyber insurance market is showing signs of a slowdown. Between 2022 and 2024, worldwide cyber premiums grew by just 6% annually, a notable drop from the nearly 40% compound growth seen during the previous hard market.
Rates have also fallen 22% from their 2022 peak, with international markets experiencing the sharpest reductions. This shift means insurers are facing a more competitive environment, and the days of rapid, easy expansion appear to be over.
Opportunities are still emerging in less-established markets, including Europe, Africa, Latin America, and Asia-Pacific, where small and medium-sized enterprise (SME) cyber business is growing. Personal lines cyber coverage is also gaining traction in Europe and the Asia-Pacific region.
“The cyber market needs to take the supply of capacity and capability to where demand will be,” Braney said. She emphasized that insurers should look beyond competing for the same pool of business in mature markets and instead direct capacity to areas where demand is increasing.
Diversification remains a key consideration as the market evolves. Ransomware is a global threat, but tactics and actors differ by region. Regulatory differences and alternative cyber products, such as personal lines coverage, can help manage risk and provide additional diversification benefits.
As demand for SME and personal lines cyber products grows internationally, Gallagher Re sees its role as connecting local carriers with global cyber capacity and expertise.
“Uncovering the rich seams of new business that lie beneath the surface of international markets will be a challenging process. However, with persistence and effort, there are huge untapped opportunities waiting to be discovered,” Braney said.
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