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Yes—cyber insurance rates have fallen across several market measures, and reports through the second quarter of 2026 describe favorable conditions for many buyers. But a lower market average is not a promise that your renewal will cost less: an insurer’s offer still depends on your business’s risk, claims, coverage, and policy terms.
Are cyber insurance premiums going down?
Several indicators point to declines, but they measure different things and should not be treated as interchangeable. A rate index tracks changes in insurance pricing for a portfolio or market segment; written premium measures the total premium insurers recorded over a period.
| Measure | Reported figure | What it tells you |
|---|---|---|
| U.S. cyber insurance rates, Q4 2024 | Down 5% on average, according to Marsh’s 2025 update (Marsh). | A rate movement reported for that period, not a forecast or an individual renewal result. |
| Global cyber insurance rates, Q2 2026 | Down 4%; Marsh reported the twelfth consecutive quarterly decline (Marsh). | A rounded average reflecting the segment mix of Marsh’s client portfolio. |
| U.S. direct written premium in 2024, including alien surplus lines | About $9.14 billion, approximately 7% below 2023; U.S.-domiciled insurers alone reported $7.08 billion, down from $7.25 billion (NAIC, 2025 report). | Total premium volume, not the average price change for a policy. |
| Global cyber insurance premium volume in 2024 | Nearly $15 billion, 7% above 2023, with most growth outside the U.S. (NAIC, 2025 report). | Market size can grow even while rates decline, because the number of buyers, coverage, or insured exposure can change. |
| Global cyber insurance premium volume in 2025 | Nearly USD 15 billion, estimated by Munich Re; the company projects around USD 28 billion by 2030 (Munich Re, April 22, 2026). | The 2030 figure is a market-size projection, not a prediction that each customer’s premium will rise or fall by a set amount. |
| Premium change reported for Q3 2025 | Down 2.6%, according to the Council of Insurance Agents & Brokers survey summarized by IOA; 14% of survey respondents reported increases in the previous quarter (IOA, December 2025). | A survey indicator rather than a universal rate change for all businesses. |
Why have cyber insurance rates fallen?
More capacity and insurer competition
Marsh cited stable capacity and continued high insurer competition in the global market in Q2 2026. IOA’s 2026 outlook also described capacity as ample and expanding in some business classes. More insurers willing to write business can give buyers more options, although neither report establishes a uniform price effect for every policy.
Underwriters value security controls and risk quality
Marsh reported that underwriters viewed companies’ investments in cybersecurity controls favorably. Aon likewise describes renewal outcomes as increasingly shaped by exposure quality and risk management. Documented controls may strengthen a buyer’s position, but the available reports do not establish that any one control guarantees a discount.
Fewer severe large claims may be easing pressure
IOA attributed continuing average rate declines in its 2026 outlook partly to lower claim severity and fewer large cyber claims in 2025. That does not mean cyber incidents or claims are universally declining: the NAIC reported that U.S. claims rose almost 40% in 2024 to nearly 50,000. Claim counts and the severity of large losses are different measures, and neither alone determines a specific company’s premium.
Some buyers have had access to broader terms
Marsh reported that in Q2 2026, broader coverage, higher limits, and reduced retentions were often available, with underwriting scrutiny tending to ease. Insurers still focused on systemic risks and the quality of a buyer’s exposure.
Will your business pay less at renewal?
Not necessarily. Market indices describe averages across particular portfolios, regions, and reporting periods; they are not quotes for every business. Aon reported favorable conditions across North America and EMEA, robust capacity, and stable limits, while emphasizing that results vary by sector, loss history, and risk profile. Businesses with stronger exposure quality and controls may have different renewal outcomes from businesses with weaker risk profiles.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsAon also warned that systemic events, concentrated losses involving vendors, or rising third-party claims could slow rate reductions. The current market direction is therefore useful context for a renewal discussion, not a guarantee about the next market cycle.
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What to compare when renewing cyber insurance
Compare proposals on equivalent terms. A lower premium may reflect a smaller limit, a higher retention, narrower coverage, or a different policy structure—not simply a better price for the same protection. Ask your broker or insurer to explain differences in the actual policy wording.
- Premium and coverage scope: Compare the total cost alongside covered incidents, exclusions, and any relevant sublimits.
- Limits and retention: Check the overall limit, sublimits, and the amount your organization must pay before coverage responds.
- Standalone policy or endorsement: Confirm whether cyber coverage is a tailored standalone policy or an endorsement to another policy. IOA warns that low-limit, generalized endorsements can leave gaps compared with standalone coverage.
- Incident response and business interruption: Verify which response services are included and how the wording treats business interruption for your organization’s exposures.
- Your risk profile: Review how the proposal accounts for your sector, geography, claims history, third-party dependencies, and documented security controls.
Use a licensed broker to compare renewal options when helpful, and assess coverage against your business’s own exposures. Market reports can explain broad conditions, but they do not replace individualized insurance or legal advice.
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