Kathmandu. Despite the rapidly evolving cyber threat scenario, swiss relay said global cyber insurance premiums fell for the third year in a row.
Since 2023, cyber insurance premiums have dropped from an annual average of 6 per cent to 5 per cent, according to Swiss Rico data. Global cyber insurance premium surged in double digits between 2017 and 2022, according to swiss rico data. However, after 2023, growth has fallen sharply to single digits.
Fabian Wiley, head of Swiss Rico Cyber accounts, said: “Despite rising cyber risks, the fall in premiums for the third year in a row is neutralizing the organic risk growth that has worked hard to build a market.” To remain sustainable, the market needs pricing stability and expansion or entry into a new customer segment. ’
Swiss riley said the fall in cyber insurance premiums was mainly due to increased competition. “Where cyber insurance supplies are outpacing demand,” the Swiss Rico report said, “This competitive environment has led to more discounts on premiums, limits, coverage and cybersecurity controls.” ’
However, cyber has become an attractive business area. Swiss Ri expects a full-year premium of $15.6 billion in 2025 and $16.4 billion in 2026.
North America continues to dominate the total premium of cyber insurance for 2025. North America’s share in premiums is 66 percent (about $10.28 billion).
It is followed by Europe with 21 per cent share and Asia Pacific region with 10 per cent.
The cyber threat scenario and the loss trend environment are evolving rapidly. The Swiss relay said caution was needed with regard to premium cuts due to concerns over systemic loss events and rising privacy liability issues. “The cyber insurance market needs to be stabilized at sustainable premium levels to counter extreme events and secure the long-term viability of this critical coverage,” the Swiss relay said.
