The US cyber insurance market shrank last year for the first time on record. This finding comes from a new report by the QualRisk Cyber Insurance Center (QCC).
According to the 2025 US Cyber Insurance Monitor (UCIM), admitted direct written premiums fell by 2.3% in 2024. The total dropped to $7.1 billion. This is the first decline since the National Association of Insurance Commissioners (NAIC) began collecting this data in 2018.
QCC CEO Daniel Kasper called the drop a “clear indicator” of a major change. “The U.S. cyber insurance market has reached an inflection point,” Kasper said.
The report points to two main reasons for the decline. First, growth in the number of policyholders has slowed. Second, insurers are practicing stricter underwriting discipline. Companies are now balancing growth with profitability in a competitive market.
Despite the overall premium drop, the largest insurers remain very profitable. The top five carriers reported a collective loss ratio of 41.8% in 2024.
The market is also highly concentrated. The study found that the top 30 carrier groups control over 90% of the market. The five largest alone hold more than 30% of all premiums.
Chubb leads the market with an 8% share. Travelers and Fairfax each hold more than 5%.
The report also notes the growing role of specialized, cyber-focused firms known as managing general agents (MGAs). Companies like Coalition, Resilience, and At-Bay are gaining ground. However, much of their business is underwritten by other carriers. This means their full impact is not captured in the main NAIC data.
QCC’s analysis suggests the total market is larger than the NAIC figure. When including alien insurers not required to report to the NAIC, the total market size is estimated to be closer to $10.5 billion.
The report concludes that insurers are carefully navigating a complex landscape. They are balancing growth, underwriting discipline, and profitability in the face of evolving cyber threats.
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