The cyber insurance market has settled into a steadier phase after some challenging years, according to Eyad Kabbani, national cyber placement leader at Marsh McLennan Agency. Speaking recently, Kabbani described a sector that has grown more balanced—competitive, disciplined, and open to new ideas.
Over the last five years, the market has matured significantly. After facing tough conditions in 2021 and 2023, prices have started to come down thanks to rising competition. While premiums aren’t back to what they were before the hard market, Kabbani says the goal now is a sustainable and stable environment for everyone involved. Despite softer pricing, underwriting remains focused and cautious. Insurers still pay close attention to security measures and risk management.
What stands out in today’s market is a shift in what clients want. Instead of just buying coverage limits, businesses are seeking more tailored programs. They want protection that fits their specific risks, including supply chain issues, errors and omissions claims, and new challenges like artificial intelligence. Kabbani notes that some client demands are pushing insurers in ways they haven’t experienced before.
This pressure is changing how insurers approach underwriting. It’s not enough to look at prevention anymore; carriers want to see solid plans for how companies respond to and recover from cyber incidents. Some insurers have even started offering incentives for clients who share real-time data, marking a new style of underwriting that could move the market forward.
The trend is moving away from simple, one-size-fits-all policies toward deeper partnerships between buyers and insurers. Kabbani points out that while the market reacts quickly to emerging threats and news headlines, true value comes from products that solve real problems and stand the test of time.
Looking ahead, Kabbani warns that fast-changing issues like artificial intelligence, global instability, and evolving cyber threats move quicker than typical insurance cycles. Innovation that delivers practical, lasting solutions will be key to success.
Brokers play an important role in this new landscape. They’re expected to provide more than just policies—offering insights based on data and analytics to help companies make smarter decisions about their risks. Insurers face the challenge of breaking through the noise with real value, whether through coverage, services, or new products. This includes excess carriers, who must now provide more than just extra capacity.
Finally, companies are being encouraged to see cyber insurance as part of broader resilience, not just a financial safety net. Those involving their entire cybersecurity teams in the insurance process tend to achieve better results. As Kabbani puts it, having everyone on board makes a big difference.
Overall, the cyber insurance market is evolving. It’s becoming more stable, client-focused, and strategic. The focus is clearly on building long-term partnerships and solutions that help businesses face today’s digital risks head-on.