The National Association of Insurance Commissioners (NAIC) published its report on the cybersecurity insurance market for 2025, finding that coverage expanded while claims increased and pricing continued to fall. Domestic policies in force rose 33% to 5.84 million, and reported claims increased 20% to 56,323. The assessment highlights pressure on rate adequacy as rising loss costs and exposure to interconnected digital systems coincide with greater competition. Total U.S. direct written premium, including alien surplus lines, increased approximately 3.5% to USD 9.46 billion in 2025, returning to growth after the previous year’s contraction. Domestic premium reached USD 7.46 billion, nearly triple the USD 2.75 billion recorded in 2020. Policy growth came largely from cyber endorsements to other commercial policies, which account for nearly two-thirds of policies in force but approximately 4% of premium. The industry cyber loss ratio rose to 53% from 48.7% in 2024, its second consecutive annual increase. Pricing continued to decline, with the first quarter of 2026 marking the eighth consecutive quarter of U.S. cyber rate cuts. The supervisory outlook identifies faster exploitation of vulnerabilities, attacks enabled by artificial intelligence and shared technology dependencies as sources of increasing loss pressure. Concentration among cloud providers creates the potential for simultaneous claims across insurers’ portfolios, while cyber coverage unintentionally embedded in other policies can compound exposure. Coverage uncertainty also persists around social engineering, funds transfer fraud and war exclusions. These risks, together with rising business interruption and litigation costs for large businesses, could test rate adequacy over the intermediate term.
US National Association of Insurance Commissioners reports 33% growth in cyber policies and 20% increase in claims for 2025
The National Association of Insurance Commissioners’ 2025 cyber insurance market report shows domestic policies rose 33% to 5.84 million and reported claims increased 20% to 56,323. U.S. premiums, including alien surplus lines, grew approximately 3.5% to USD 9.46 billion, while the industry loss ratio increased to 53% and rate cuts continued into early 2026. The report highlights potential pressure on rate adequacy from rising loss costs, attacks enabled by artificial intelligence and correlated exposure to shared technology providers.