Nearly $7.1 billion in cyberinsurance premiums were collected last year, which is a 2.3% year-over-year decline, marking the first ever reduction in premiums since tracking began in 2015, reports Cybersecurity Dive.
Average cyberinsurance prices also decreased by 1.6% during the second, third, and fourth quarters of 2024, with similar reductions in premiums and pricing indicating steady demand, according to an AM Best report citing Council of Insurance Agents and Broker data. Chubb continued to be the leading cyber insurer by yearly premiums, followed by Travelers Group and Fairfax Financial. Lower cyberinsurance premiums have been attributed to both pricing changes and corporations' usage of captive insurance firms for cyber risk exposure management. "Organizations that have strong cyber hygiene and historically good loss experience are finding it more beneficial to pay their own captive, keeping the money under the same parent, thus keeping the benefit of their own good experience," said AM Best.
Average cyberinsurance prices also decreased by 1.6% during the second, third, and fourth quarters of 2024, with similar reductions in premiums and pricing indicating steady demand, according to an AM Best report citing Council of Insurance Agents and Broker data. Chubb continued to be the leading cyber insurer by yearly premiums, followed by Travelers Group and Fairfax Financial. Lower cyberinsurance premiums have been attributed to both pricing changes and corporations' usage of captive insurance firms for cyber risk exposure management. "Organizations that have strong cyber hygiene and historically good loss experience are finding it more beneficial to pay their own captive, keeping the money under the same parent, thus keeping the benefit of their own good experience," said AM Best.
