Cyber insurance rates fall for fourth year despite rising threats

In 2026, cyber insurance premiums experienced a 5% decrease, continuing the fourth year of declines, according to Swiss Re. The reinsurer noted that global rates fell by approximately 13% in 2025, leading to a supply-demand imbalance in the market. Despite the rise in cyber risks such as ransomware, geopolitical tensions, and artificial intelligence, insurers are facing a buyers' market.

In the United States, prices have stabilized as carriers address profitability concerns, while Europe continues to experience more significant rate reductions due to intense price competition. AI is transforming the cyber-risk landscape by aiding criminals in identifying vulnerabilities, automating attacks, and launching sophisticated phishing campaigns.

However, AI is also enhancing threat detection and incident response for businesses. Swiss Re concluded that AI is amplifying existing cyber risks rather than introducing entirely new categories of insured losses. AI-related claims are currently minimal, although insurers must monitor technological, regulatory, and loss developments to ensure clear policy coverage.

Swiss Re anticipates global cyber insurance premiums to reach $16.4 billion in 2026 and $17.1 billion in 2027, with a steady 5% compound annual growth rate since 2022, albeit slowed by lower prices. North America dominates the market, contributing about two-thirds of global premiums at $10.7 billion in 2026, while Europe accounts for 21% at $3.42 billion as insurers and cyber-MGAs form partnerships across the region.