- Top 20 US cyber insurance companies by premiums
- Cyber insurance endorsements drive policy growth
- Surplus lines insurers control nearly two-thirds of cyber premiums
- Cyber insurance protection gap remains significant
- Cyber insurance loss ratios rise despite falling rates
- How much does cyber insurance cost?
- What does cybersecurity insurance cover?
The US domestic cyber insurance market has nearly tripled since 2020, with direct written premiums approaching $7.5 bn in 2025, according to a new report from the National Association of Insurance Commissioners (NAIC).
Domestic premiums increased from $2.75 bn in 2020, while total US cyber insurance premiums, including business written by alien surplus lines insurers, reached approximately $9.5 bn in 2025, up 3.5% from the previous year.
In 2026, the U.S. cyber insurance market experienced its second consecutive year of strong underwriting profits. However, the volume of written insurance premiums remained stagnant due to renewed pricing pressure.
Top 20 US cyber insurance companies by premiums
| Rank | Insurance group | Direct written premiums | Loss ratio with DCC | Market share |
| 1 | Chubb | $629 mn | 58.81% | 8.44% |
| 2 | Beazley | $571 mn | 16.28% | 7.65% |
| 3 | St Paul Travelers | $544 mn | 58.26% | 7.29% |
| 4 | Sompo | $342 mn | 60.78% | 4.58% |
| 5 | Tokio Marine Holdings | $319 mn | 56.60% | 4.28% |
| 6 | Fairfax Financial | $302 mn | 53.62% | 4.05% |
| 7 | American International | $296 mn | 62.28% | 3.97% |
| 8 | Arch Insurance | $284 mn | 41.60% | 3.81% |
| 9 | At Bay Specialty Insurance | $268 mn | 73.45% | 3.60% |
| 10 | Starr | $251 mn | 3.75% | 3.36% |
| 11 | QBE Insurance | $231 mn | 74.42% | 3.10% |
| 12 | AXIS Capital | $231 mn | 61.73% | 3.10% |
| 13 | CNA Insurance | $212 mn | 59.51% | 2.85% |
| 14 | AXA Insurance | $204 mn | 72.29% | 2.74% |
| 15 | AmTrust Financial Services | $201 mn | 60.28% | 2.69% |
| 16 | Intact Financial | $199 mn | 26.15% | 2.66% |
| 17 | Berkshire Hathaway | $173 mn | 88.03% | 2.32% |
| 18 | Hartford Fire & Casualty | $166 mn | 10.70% | 2.23% |
| 19 | Liberty Mutual | $161 mn | 60.77% | 2.16% |
| 20 | Zurich Insurance | $145 mn | 54.81% | 1.94% |
Chubb retained its position as the largest US domestic cyber insurer in 2025, with $629.2 mn in direct written premiums and an 8.44% market share. Beazley recorded the biggest ranking improvement among the top 20, climbing from 16th to second place with $570.9 mn in premiums.
The five largest insurers accounted for 32.24% of the market, while the top 10 controlled 51.03%.
For any companies that store financial, personal health, or other client data, a comprehensive cyber insurance plan is a must. Over 500 insurers now provide this type of insurance, it’s important to get to know more about the different groups when shopping around.
Cyber insurance endorsements drive policy growth
More than 60% of US cyber insurance premiums are generated by primary cyber policies, although endorsements account for the largest share of policies in force.
This distribution reflects the widespread practice of including relatively limited cyber protection within existing commercial insurance policies rather than purchasing dedicated coverage.
The number of domestic cyber insurance policies in force increased 33% in 2025 to approximately 5.8 mn.
Endorsement policies recorded the strongest growth, rising 53.8% year over year. Primary cyber policies increased 13.6%, while surplus policies declined 45.3%.
Despite representing nearly 53% of all policies in force, endorsements generated only 4% of cyber insurance direct written premiums.
Surplus lines insurers control nearly two-thirds of cyber premiums
The NAIC identified an increasingly distinct division between admitted and surplus lines insurers in the US cyber insurance market.
U.S. cyber is becoming two distinct sub-markets: a surplus lines market writing primary and excess cyber-specific policies and an admitted market focused on endorsements to other commercial policies.
Surplus lines insurers now account for nearly two-thirds of total cyber insurance premiums, reflecting their concentration in dedicated primary and excess coverage.
Admitted insurers, meanwhile, are more heavily represented in the endorsement market, where policy volumes are high but premiums per policy are comparatively low.
Cyber insurance protection gap remains significant
Cyber insurance penetration remains limited relative to the economic damage associated with cyber incidents.
Global economic cyber losses ranging from $1 bn to $10 bn, with further increases projected as artificial intelligence, more sophisticated ransomware attacks, third-party technology dependencies and geopolitical risks intensify potential exposures.
Only approximately 1% of global economic losses caused by cyber incidents are covered by insurance, according to the NAIC.
Cyber insurance loss ratios rise despite falling rates
Underwriting conditions have become more challenging as cyber insurance pricing continues to decline.
The first quarter of 2026 marked the eighth consecutive quarter of cyber insurance rate reductions, even as the industry loss ratio deteriorated to 53% in 2025 from 48.7% in 2024.
The NAIC reported increasing claims severity among large and medium-sized businesses, although claims frequency declined in both segments. Smaller businesses experienced lower claims severity.
The combination of falling premiums rates, higher loss ratios and rising claim severity among larger insureds presents a more demanding underwriting environment, even as the number of cyber insurance policies continues to expand.
In a heightened cyber threat environment, prevention, preparedness, and protection are essential. Enhanced cyber risk management strengthens an organization’s resilience against ransomware and other financial cyberattacks. It also equips them to handle a volatile geopolitical climate that could lead to larger-scale incidents, according to Global Cyber Risk Insurance Report.
Cyber liability insurance covers the financial costs associated with a breach, as well as first party costs including event management, data restoration, financial costs to third parties, network interruption, and cyber extortion.
For many US-based businesses, cybersecurity insurance has become a popular tool for managing risk. Recent figures show that of all cyber insurance premiums written in the country, more than three-fourths are under corporate insurance.
According to Allianz Cyber Security Global Trends, hackers are increasingly targeting IT and physical supply chains, launching mass cyber-attacks and finding new ways to extort money from companies, large and small.
Reported ransomware attacks on U.S. critical infrastructure
Systemic cyber attacks are highly uncertain in terms of trigger, likelihood and size. On the one hand, the potential for loss is clear – the proliferation of attack surfaces from rapid digitalisation, limited understanding of where and how technologies are vulnerable and a dearth of historical data on cyber catastrophes – but it is also true that only a small number of nation state actors or highly sophisticated groups have the capabilities, expertise and resources to execute such attacks.
How much does cyber insurance cost?
The cost of cybersecurity insurance premiums is determined by a range of factors, including the size, nature, and location of the business.
Data shows that the average cost of cyber insurance in the US was $1,485 annually. The firm, however, noted that due to the spate of cyberattacks in 2024-2025, premium prices are likely to soar as well.
States with the most expensive cybersecurity insurance
| State | Annual average premiums | Difference from national average |
|---|---|---|
| Minnesota | $1,708.11 | 15.03% |
| Arkansas | $1,646.50 | 10.88% |
| West Virginia | $1,629.64 | 9.74% |
| Louisiana | $1,623.94 | 9.36% |
| New York | $1,616.70 | 8.87% |
| New Jersey | $1,615.25 | 8.77% |
| Connecticut | $1,593.62 | 7.42% |
| Kentucky | $1,587.10 | 6.88% |
| Arizona | $1,581.50 | 6.50% |
| Ohio | $1,553.68 | 4.63% |
States with the least expensive cybersecurity insurance
| State | Annual average premiums | Difference from national average |
|---|---|---|
| Michigan | $1,339.33 | -9.81% |
| New Mexico | $1,355.36 | -8.73% |
| Massachusetts | $1,380.59 | -7.03% |
| South Carolina | $1,398.83 | -5.80% |
| North Carolina | $1,421.49 | -4.27% |
| Wyoming | $1,426.89 | -3.91% |
| California | $1,430.18 | -3.69% |
| New Hampshire | $1,431.99 | -3.57% |
| Illinois | $1,434.59 | -3.39% |
| Delaware | $1,446.47 | -2.59% |
What does cybersecurity insurance cover?
Cyber insurance is designed to protect businesses against financial losses resulting from cyber incidents. Policies typically provide two types of protection, namely first-party and liability coverage. Here’s what these different types of coverages pay out for.
First-party coverage
This type of coverage pays out for the financial losses the business incurs due to a cyber incident, including the cost of responding to a data breach, restoring and recovering lost or damaged data, lost income resulting from business interruption, ransomware attack payments, and risk assessment of future cyberattacks.
Most policies also cover the cost of informing customers about the incident and providing clients with anti-fraud services.
Liability coverage
Also referred to as third-party liability coverage, this provides financial protection against lawsuits filed by third parties, including customers, employees, and vendors, for damages caused by a cyberattack on the business. Policies typically cover court and settlement fees, and regulatory fines.
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Fact-checked by Oleg Parashchak – CEO Finance Media & Editor-in-Chief at Beinsure Media and Insurance TOP Ratings (25+ years of professional experience in Rankings, Insurance & Media).
