US cyber insurance premiums fall for first time since 2018, report shows

The US cyber insurance market has recorded its first decline in premium volume since official tracking began, a development analysts said signals a turning point for the sector. 

According to the 2025 US Cyber Insurance Monitor (UCIM), released by the QualRisk Cyber Insurance Center (QCC), admitted direct written premiums fell 2.3% in 2024 to $7.1 billion. This marks the first contraction since the National Association of Insurance Commissioners (NAIC) introduced dedicated cyber reporting in 2018.

QCC chief executive Daniel Kasper said the downturn reflects both a slowdown in new policy uptake and insurers’ push to prioritize sustainable underwriting over rapid expansion. He noted that the decline comes against a backdrop of “still soft pricing” and shifting risk conditions, with carriers weighing growth ambitions against profitability.

Despite the slowdown, market concentration remained high. The top 30 carrier groups controlled more than 90% of admitted premium last year, while the top five accounted for over 30%. Chubb retained the largest share at 8%.

While multiline incumbents dominate the space, cyber-focused managing general agents (MGAs) such as Coalition, Resilience and At-Bay are carving out a bigger presence. However, QCC cautioned that much of their premium is not fully visible in NAIC data, since capacity often sits with partner insurers.

QCC’s analysis places the broader US cyber insurance market, including non-admitted and alien insurers, at $10.5 billion. These totals may also include related lines such as technology errors and omissions (E&O).

Profitability remains strong for leading carriers. The top five groups reported a combined loss ratio of 41.8% in 2024, underlining that despite slower premium growth, underwriting performance is holding firm. Market dynamics also vary by segment: Chubb led primary coverage with a 30% top-five share, Starr dominated surplus lines with 26%, and The Hartford accounted for more than a quarter of endorsement premium.

Meanwhile, strategic approaches differ across carriers. Arch has spread its exposure across multiple segments, while others are focusing on specific niches. 

Industry observers said the first-ever premium contraction should not be read as a signal of weakening demand but rather as a recalibration. Brokers note that buyers remain concerned about affordability, while reinsurers see the trend as a sign that carriers are managing capital more carefully after years of fast growth. Market analysts added that if profitability remains strong, insurers may soon be willing to expand capacity again, particularly if demand rises amid continued cyber threat activity.

The findings also suggested that the US cyber market has entered a new phase where premium growth is no longer guaranteed, leaving carriers under pressure to refine risk strategies, defend profitability and differentiate in an increasingly competitive field.