Funding for cyber insurance in the managing general agent (MGA) sector softened significantly in 2025, with fewer deals and smaller investment rounds, according to new data from the QualRisk Cyber Insurance Center (QCC). Publicly disclosed funding dropped to $49 million last year, down from $87 million in 2024.
The latest QCC report highlights a trend toward consolidation in the sector. Big moves like Zurich’s recent purchase of Canadian MGA BOXX Insurance show sponsors and carriers are seeking to grow through acquisitions to gain scale and diversify their offerings.
Europe has become a hotspot for MGAs looking to expand, especially in Germany and France. These markets are attractive for targeting mid-sized businesses and specialized insurance lines. Meanwhile, firms are also preparing to enter Asian markets where cyber insurance demand is expected to rise as local capacity and infrastructure improve.
Daniel Kasper, QCC’s CEO, pointed out that the rise in ransomware attacks is heating up competition between MGAs and traditional insurance carriers. He expects North American MGAs will continue their expansion into Europe and Asia throughout 2026. Kasper encourages players across the industry to rethink their strategies and focus areas to stay competitive.
Over the past ten years, MGAs focused on cyber insurance have grown quickly due to more cybercrime and rising premiums. Today, they underwrite about one-third of global cyber insurance premiums. However, a softening market now means lower rates, driven by more capacity and stronger competition among MGAs and carriers.
This drop in premiums doesn’t mean the risks are getting smaller. In fact, new cyber threats powered by AI are evolving fast and often outpace the security measures many companies have. That gap worries many experts, who fear pressure to win business might lead to weaker underwriting standards and could hurt the market’s long-term health.
The kinds of cyber claims are also changing. In the first half of 2025, social engineering scams like phishing made up 57% of incident claims and 60% of losses. Attackers are now using AI to create fake audio and video, making it easier to trick people and break past traditional defenses.
These developments mean MGAs and insurers need to adjust how they assess risk and write policies. Keeping up with cybercrime tactics is essential for protecting their clients and their own business.
As the cyber insurance world shifts, firms that adapt quickly and smartly will be the ones to stay ahead in a market that is anything but quiet.