Increased competition and stagnating demand, especially in the US, are decelerating the pace of premium growth in the global cyber insurance market for the second year in a row, Moody’s said in a new report.

Citing Munich Re data, Moody’s said that gross premiums written in the global cyber insurance market approached $15 billion in 2024, a 7% increase over 2023.

However, as per the rating agency, this represents a significant slowdown compared with growth rates of 20%-40% from 2018-22.

“We expect cyber insurance premiums to grow in the single-digit percentage range over the next several years, absent major catastrophe losses,” Moody’s observed.

Notably, premium growth in the US cyber insurance market, the largest in the world, is tapering off faster than in non-US markets.

“Over the last two years, a significant proportion of the growth in global cyber insurance premiums has stemmed from non-US regions, where lower penetration rates and increased regulatory requirements (particularly in Europe) are spurring demand for cyber coverage,” Moody’s explained.

“The cyber insurance market is likely to continue to grow at a faster pace in these regions, where there is still a significant untapped market, compared to the US. Insurance broker Howden points to opportunities for growth within Europe in countries such as Germany, France and Italy, and in other regions including Asia Pacific and Latin America,” the rating agency added.

Despite this modest slowdown, Moody’s has suggested that the cyber insurance market is poised to grow significantly over time, as cyber threats continue to escalate and society becomes increasingly interconnected and reliant on the digital economy.

“Business leaders around the world remain concerned about cyber risks, as shown in Allianz’ 2025 Risk Barometer report in which 3,800 survey participants from 106 countries ranked cyber incidents as the top global risk for the fourth consecutive year,” Moody’s noted.

This finding is consistent with Munich Re’s previous survey, which found that over 7,500 senior leaders from corporations across 15 countries reported that their companies lacked adequate protection against cyberattacks, with 87% of respondents expressing this sentiment.

Moody’s concluded, “As awareness increases around cyberattacks and their potential to cause significant financial and reputational damage and disrupt business operations, demand for cyber insurance will continue to grow.

“In addition to cyber insurance, businesses will need to continue to invest in internal systems and processes to avoid a cyberattack in the first place, as well as develop, maintain and test comprehensive business continuation plans in case of an attack.”

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