Organizations worldwide are increasing investments in cybersecurity, a trend expected to influence demand, capacity and pricing in the cyber insurance market in 2026 and beyond.
Research from Marsh, based on more than 2,200 cyber risk leaders across 20 countries, showed that nearly 75% of organizations express high confidence in their cyber risk management strategies. At the same time, 66% plan to increase cybersecurity spending next year, with more than a quarter boosting budgets by 25% or more.
The rise in client investment is reflected in insurance market trends. Swiss Re estimated that global cyber premiums will reach roughly $16.4 billion in 2026, up from $15.6 billion in 2025, while Munich Re projected that premiums could more than double from 2025 to 2030 under steady growth assumptions.
In the US, however, direct written premiums fell modestly in 2024 as insurers shifted toward disciplined underwriting. Reinsurance capacity continues to expand, with about $250 million in new cyber reinsurance capacity entering the market in H1 2025. This expansion allows insurers to offer broader coverage and higher policy limits.
The combination of rising client cybersecurity investment and increased insurance capacity is expected to shape underwriting and market behavior in 2026, according to the report.
Policies may also increasingly reflect risk-based segmentation, offering favorable terms to organizations demonstrating strong cyber defenses. Brokers and risk advisors will likely play a larger role in helping clients implement controls, prepare for incidents, and access coverage tailored to their risk profile. SMEs, still often underinsured, may become a key growth segment as demand for cyber coverage expands, Marsh reported.
Meanwhile, the top global cyber threats remain ransomware, attacks and privacy breaches, while 70% of organizations experienced at least one material third-party cyber incident in the past year. The evolving threat landscape underscores the need for integrated risk management and insurance, with firms and insurers alike emphasizing preparedness, controls, and resilience, the report said.
As businesses invest in technology, talent, and preparedness, the cyber insurance market is expected to see rates stabilise while expanding uptake across sectors. The outlook for 2026 suggests a maturing, more disciplined cyber insurance market, where client risk management efforts directly influence coverage availability, pricing, and terms.
