At a Glance

  • Global insurance brokerage Arthur J. Gallagher & Co. said cyber insuranceprices are expected to remain stable at least through the first half of 2026, following a "market softening" that began three years ago and has now largely stabilized.
  • In its 2026 cyber insurance outlook report released this month, Gallagher said industry pricing has fallen from the highs seen in the early stages of the "hard market cycle" in the first half of 2021.
  • The report noted: "We attribute this to competitive market dynamics, with underwriters under pressure to meet ambitious growth targets." However, not all sectors saw cyber insurance prices decline. Gallagher cited healthcare as an example, where competition is "less intense" due to the claims environment, leading to "slightly higher" prices.

Deep Insights

Research shows the global cyber insurance market could reach $50 billion in total value by 2030, compared to an estimated $16 billion to $20 billion in 2025.

A report released last year by the National Association of Insurance Commissioners (NAIC) noted that the market experiencedrapid expansionfrom 2020 to 2022, with year-over-year growth peaking at nearly 61% in 2021.

The NAIC report stated: "This period of rapid premium growth reflected the market's response to a more complex and volatile cyber threat landscape. Following this surge, growth slowed significantly, with only 1.62% growth in 2023. The market then contracted for the first time during this period, declining 7.11% in 2024."

Gallagher's research also noted that while the cyber insurance market remains generally favorable to buyers, ransomware and supply chain risks persist, and artificial intelligence is expected to intensify the threat landscape this year.

The brokerage said: "As the industry moves into 2026, insurers are expected to refine policy wording, address AI-related risks, and focus on practical risk management strategies to mitigate the impact of deepfake technology, social engineering, and supply chain disruptions."