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Cyber-insurance prices have eased for many buyers as insurer capacity and competition have grown, but there has been no universal price collapse. U.S. market-wide premium volume fell in 2024, broker clients reported lower renewal costs in 2025, and a global market estimate showed another decline late in 2025. Those figures measure different things—and some sectors, including healthcare, have faced firmer pricing.
What the price data actually shows
There is no single universal cyber-insurance price index in the available figures. Market-wide premium volume, an insurer’s average rate movement, a broker’s clients’ renewal results, and a global pricing estimate are different measures. They should not be treated as interchangeable.
| Measure | Reported change | What it covers |
|---|---|---|
| U.S. direct written premium volume | $9.14 billion in 2024, down 7.11% from 2023 | NAIC’s U.S. total, including alien surplus lines carriers. The NAIC’s 2025 report described this as the first decline in its series. NAIC report |
| U.S. domiciled insurers’ direct written premium | $7.08 billion in 2024, down 2.3% from 2023 | NAIC figure excluding alien surplus lines; it is not directly comparable to the $9.14 billion total. NAIC report |
| U.S. rate movement | Average rates declined 5% in Q4 2024 | The NAIC’s 2025 report cites Marsh data for this policyholder-price measure. NAIC report |
| Aon client renewal premiums | Average decrease of 7% in Q1 2025 | Aon placement/client data, which is not a census of U.S. policyholders; Aon associated the decreases with ample and new capacity and incumbent competition. Aon 2025 report |
| Global cyber-insurance pricing | Approximately 7% lower in Q4 2025 | CRC Group’s global estimate in its 2026 outlook. CRC outlook |
| Aon client renewals during 2025 | Average reductions of 4%–7% | Aon reported results from its own placements in its 2026 market report, not the entire market. More than 90 insurers participated in its 2025 cyber placements, while roughly 80% of premium placed was aggregated to the top 20 insurers. Aon market report |
A drop in total premium volume does not, by itself, mean every buyer paid less. Premium volume can change with the number of policies, coverage limits, business mix, and which insurers are included. Renewal-rate data is closer to the price change an existing buyer may experience, but broker results describe that broker’s clients rather than every insured business.
Why competition is putting pressure on premiums
Market reports point to increased insurer and reinsurance capacity, new entrants, and competition to win business or retain existing customers. When insurers have more capacity to offer, buyers and brokers may have more alternatives at renewal. Aon linked lower average client premiums in Q1 2025 to ample and new capacity and competition among incumbent insurers. Aon’s 2025 report
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Competition can also give buyers room to negotiate policy structure. Aon reported that some clients used favorable conditions to expand coverage, increase limits, or adjust retentions. A lower premium is not necessarily a better deal, however: the coverage may have changed along with the price.
Why a falling market can still produce higher claims—and higher renewals
Insurance pricing reflects more than the number of competitors. The NAIC reported nearly 50,000 U.S. cyber claims in 2024, almost 40% more than a year earlier, while 4,368,614 policies were in force, nearly flat year over year. Those figures show that claims activity can rise even while rates soften; they do not establish that every insurer’s losses or every buyer’s renewal cost moved the same way. NAIC report
Insurers can respond differently to claims, their own underwriting results, and the risks they accept. CFC’s March 2026 commentary describes capacity and competition as downward pressures, while rising claims have led some insurers to raise renewal rates. Stronger cybersecurity controls may improve an applicant’s underwriting position, but they do not guarantee a discount or a particular renewal outcome. CFC’s 2026 commentary
Which buyers may not see lower prices
Market conditions vary by sector and insurer. Gallagher’s 2026 U.S. outlook describes prices as generally flat through 2025 and anticipates that pattern continuing through at least the first half of 2026. It also reports less competition in healthcare and single-digit price increases from at least one major carrier in that sector. This is an outlook, not a guarantee of what any particular organization will pay. Gallagher’s 2026 outlook
Your renewal can differ from a market average because insurers assess the individual account and the coverage being purchased. A favorable broad trend is not a substitute for comparing actual quotes and policy wording.
How to evaluate a cyber-insurance renewal
Compare the protection offered, not only the premium. Ask your broker or insurer to show what changed between the expiring policy and each renewal option.
- Limits and sublimits: Compare the maximum overall payout and any lower caps for particular losses or services.
- Covered costs: Check which incident-response, legal, recovery, and business-interruption expenses are covered and under what conditions.
- Exclusions and policy conditions: Review excluded events and the requirements you must meet to qualify for or retain coverage.
- Retention or deductible: A lower premium may come with more of the initial loss left for you to pay.
- Claims response: Understand how claims are reported and what response support the insurer provides.
- Security requirements: Confirm the controls and disclosures required for underwriting and renewal, and make sure your organization can meet them.
Ask for a side-by-side comparison of limits, sublimits, exclusions, retentions, and conditions. A cheaper quote is not equivalent to the expiring policy if it narrows coverage or shifts more loss to you. Aon reports that buyers have used favorable conditions to adjust limits, coverage, and retentions, underscoring why the policy structure belongs in the comparison. Aon market report
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What could change the direction of prices?
CRC expects a relatively soft market through 2026 unless a significant systemic loss event changes insurer appetite. Its outlook identifies a cloud outage, critical-infrastructure ransomware, a major supply-chain catastrophe, and widespread AI-enabled financial fraud as examples of events that could create substantial accumulated losses and put pressure on the market. These are potential triggers, not predictions that such losses will occur. CRC outlook
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Aon also warns that insurer mergers and acquisitions could affect capacity and program structures over the longer term. For buyers, that means market averages and forecasts are useful context, but the renewal quote and wording in front of you remain the relevant basis for a decision. Aon market report
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