Insurers writing standalone cyber insurance products reported $1.11 bn in direct written premiums spread among 46 groups of insurers (140 individual insurers). The TOP 10 insurers wrote 82.3% of the total US market. TOP 20 Cyber Insurance Companies in the U.S. market account for more than $4 bn of direct premiums written.
The cybersecurity insurance sector will grow into a $20 billion industry by 2025.
This Largest U.S. cyber underwriters in the United States, according to A.M. Best research & data. The entire property & casualty insurance industry underwrote approximately $5 bn of U.S. cyber insurance premiums.
TOP 15 Largest US Cyber Insurers
| № | Insurance Group | Premiums Written, $mn | Change , % |
|---|---|---|---|
| 1 | Chubb INA Group | 473.1 | 17.1 |
| 2 | Fairfax Financial Group | 436.4 | 302.1 |
| 3 | XL Reinsurance America Group | 421.0 | 43.7 |
| 4 | Tokio Marine US PC Group | 249.8 | 189.3 |
| 5 | American International Group | 240.6 | 5.3 |
| 6 | Travelers Group | 232.3 | 12,3 |
| 7 | Beazley USA Insurance Group | 200.9 | 13 |
| 8 | CNA Insurance Companies | 181.4 | 51.6 |
| 9 | Arch Insurance Group | 171.2 | 967.3 |
| 10 | AXIS US Operations | 159.1 | 19.1 |
| 11 | Zurich Insurance US PC Group | 151.9 | 135.7 |
| 12 | Liberty Mutual Insurance Companies | 138.2 | 230.2 |
| 13 | Sompo Holdings US Group | 133.5 | 83.9 |
| 14 | BCS Financial Group | 132.0 | 52.5 |
| 15 | Hartford Insurance Group | 123.2 | 19.1 |
Source: A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED
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 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.
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 2022, 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 – Editor-in-Chief Beinsure Media, CEO Finance Media Holding
