Best’s Market Segment Report: AM Best Maintains Stable Outlook on Global Cyber Insurance Segment

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best is maintaining its stable outlook on the global cyber insurance segment, as demand for coverage remains strong and is anticipated to persist.

The Best’s Market Segment Report, “Market Segment Outlook: Global Cyber Insurance,” states that although cyber insurance market conditions have softened since 2023, a major opportunity for market expansion still exists as awareness and adoption of cyber insurance continue to rise, particularly among small and medium-sized enterprises. Profitability is also expected to continue over the intermediate term despite ongoing competitive pressures.

“Fundamentally, the market’s expansion is underpinned by increasing awareness of cyber risk and the need for risk transfer solutions to protect against the growing threat of cyber crime,” said Robert Gabriel, senior financial analyst, AM Best. “Heightened awareness of cyber threats also has motivated insureds to strengthen their cyber hygiene, leading to more robust defenses and swifter incident responses, which in turn has helped to reduce potential losses.”

Other factors underpinning the stable outlook include:

• Continued capital support and expansion fueled by reinsurers and, to some extent, alternative capital providers.

• Artificial intelligence-driven risk selection and underwriting, which builds in efficiencies.
  
• Regulatory and compliance requirements that are driving higher cyber insurance adoption.

The report notes that systemic risks from large-scale cyber incidents remain a concern due to the interconnectedness of digital systems and the potential for cascading losses across industries. The AI-driven proliferation of cyber-attacks also can increase the scale and complexity of attacks. Additionally, the ongoing challenge of ransomware, business email compromise and funds transfer fraud continues to escalate.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=355336.

AM Best will host a briefing on July 23, 2025, at 11:00 a.m. EDT to discuss the state of the cyber insurance market, including evolving threats in the cyber space and how companies and insurers are working together to reduce losses. To register and learn more about the briefing, go to https://web.ambest.com/about/events/briefings/cyber-insurance-continued-evolution/.

Additionally, the Best’s Market Segment Report, “US Cyber: Pricing Cuts Bring First Ever Reduction in Direct Premiums Written,” is available at http://www3.ambest.com/bestweek/purchase.asp?record_code=354887.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Robert Gabriel
Senior Financial Analyst

+1 908 882 1789

robert.gabriel@ambest.com

Michael Lagomarsino, CFA, FRM

Senior Director

+1 908 882 1993

michael.lagomarsino@ambest.com

Valeria Ermakova
Associate Director, Analytics

+44 20 7397 0335

valeria.ermakova@ambest.com

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best