Two recent studies released on October 23, 2025, highlight contrasting trends in the global cyber insurance sector — a rapidly expanding market alongside falling premium rates.
Global Cyber Insurance Rates Fall in Q3 2025
Marsh’s Global Insurance Market Index reported that global cyber insurance rates declined by 6% in the third quarter of 2025. Rate decreases were observed across all regions, led by Europe at 12%, followed by Latin America and the Caribbean (LAC) and the United Kingdom at 11% each, and the Pacific region at 10%.
According to Marsh, the downward trend reflects increased insurer competition, favorable reinsurance pricing, and sufficient market capacity. John Donnelly, President of Global Placement at Marsh, stated that clients are benefiting from lower rates and the opportunity to negotiate improved terms and broader coverage. The firm expects these conditions to persist barring major disruptions. A recent report from Gallagher supports this analysis.
Market Growth Continues at Double-Digit Pace
While rates decline, Research and Markets projects robust market growth for cyber insurance. The firm estimates the global market will reach $44.67 billion by 2032, expanding at a compound annual growth rate (CAGR) of 11.7%.
The report attributes the growth to accelerated digital transformation, increased adoption of cloud services, and the proliferation of interconnected systems. These developments, coupled with emerging regulatory requirements and evolving cyber threats, are prompting organizations across industries to seek financial mechanisms to manage exposure and strengthen cybersecurity.
Drivers of Growth Amid Falling Rates
The studies indicate that the cyber insurance market can grow even as rates fall. Lower premiums have encouraged higher policy adoption and greater overall premium volume. Increased competition from new insurers and capital inflows since the strong growth years of 2021 through 2023 have expanded capacity and made coverage more accessible.
Small and medium-sized enterprises (SMEs), which account for about 90% of global businesses, are a key factor in this expansion as more of them purchase cyber insurance policies.
Projections Through 2030 and Beyond
A white paper by Lockton Re, Cyber Insurance 2030: Charting a Course for Growth, describes the cyber liability sector as one of the “stand-out successes of property and casualty insurance in the last couple of decades.” The report notes compound annual growth rates exceeding 20% in recent years — and at times surpassing 30% — as evidence of the sector’s strength.
Lockton Re projects that global cyber insurance premiums could reach between $30 billion and $40 billion by 2030, with the overall market expected to more than double by then. The firm adds that continued expansion will depend on sustained regulatory momentum, investor confidence, and industry innovation.
