Lower cyber insurance premiums have been attributed to both pricing changes and corporations' usage of captive insurance firms for cyber risk exposure management.
Nearly $7.1 billion in cyber insurance premiums were collected last year, a 2.3 percent year-over-year decline, marking the first ever reduction in premiums since tracking began in 2015.
According to Cybersecurity Dive, average cyber insurance prices also decreased by 1.6 percent during the second, third, and fourth quarters of 2024, with similar reductions in premiums and pricing indicating steady demand, according to an AM Best report citing Council of Insurance Agents and Broker data.
Lower cyber insurance premiums have been attributed to both pricing changes and corporations' usage of captive insurance firms for cyber risk exposure management.
"Organisations that have strong cyber hygiene and historically good loss experience are finding it more beneficial to pay their own captive, keeping the money under the same parent, thus keeping the benefit of their own good experience," said AM Best.
Written by
Dan Raywood is a B2B journalist with 25 years of experience, including covering cybersecurity for the past 17 years. He has extensively covered topics from Advanced Persistent Threats and nation-state hackers to major data breaches and regulatory changes.
He has spoken at events including 44CON, Infosecurity Europe, RANT Forum, BSides Scotland, Steelcon and the National Cyber Security Show, and served as editor of SC Media UK, Infosecurity Magazine and IT Security Guru. He was also an analyst with 451 Research and a product marketing lead at Tenable.
