The US cyber insurance market saw its first drop in premium volume since tracking began in 2018, marking a significant shift for the industry. In 2024, the total admitted direct written premiums decreased by 2.3%, falling to $7.1 billion, according to the 2025 US Cyber Insurance Monitor from the QualRisk Cyber Insurance Center (QCC).
QCC’s CEO, Daniel Kasper, explained that this decline reflects fewer new policies being purchased and insurers focusing more on steady underwriting rather than growing quickly. He also pointed out that prices remain somewhat low, and the risks are changing. Insurance companies are balancing their desire to grow with the need to make a profit.
Even with the slowdown, the market remains very concentrated. The top 30 insurance groups control over 90% of the admitted premiums, while the top five hold more than 30%. Chubb leads the pack, holding an 8% share of the market.
While big, multi-line insurers dominate, specialized cyber insurance agents like Coalition, Resilience, and At-Bay are gaining ground. But much of their business isn’t fully visible in official data because they often work through partner insurers. When including all parts of the market—such as non-admitted and alien insurers—premium totals reach about $10.5 billion and may include related coverages like technology errors and omissions insurance.
The top five insurers reported strong profitability with a combined loss ratio of just 41.8% in 2024. Different companies lead different segments: Chubb leads primary coverage, Starr is top for surplus lines, and The Hartford has the biggest share in endorsements. Some, like Arch, spread their risk across many areas, while others target specific niches.
Experts say this drop in premiums shouldn’t be seen as a lack of demand. Instead, it shows the market is adjusting. Buyers remain concerned about cost, and reinsurers believe insurers are now managing their capital more carefully after years of rapid growth. If profits stay strong, companies may start expanding their capacity again, especially if cyber threats continue to rise.
The overall message is clear: the US cyber insurance market is entering a new stage. Premium growth is no longer automatic, and insurers must focus on managing risk and protecting profits while standing out in a competitive field.