TOP 15 U.S. Cyber Insurance Companies & Groups

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 GroupPremiums Written, $mnChange , %
1Chubb INA Group473.117.1
2Fairfax Financial Group436.4302.1
3XL Reinsurance America Group421.043.7
4Tokio Marine US PC Group249.8189.3
5American International Group240.65.3
6Travelers Group232.312,3
7Beazley USA Insurance Group200.913
8CNA Insurance Companies181.451.6
9Arch Insurance Group171.2967.3
10AXIS US Operations159.119.1
11Zurich Insurance US PC Group151.9135.7
12Liberty Mutual Insurance Companies138.2230.2
13Sompo Holdings US Group133.583.9
14BCS Financial Group132.052.5
15Hartford Insurance Group123.219.1

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 2021, premium prices are likely to soar as well.

States with the most expensive cybersecurity insurance

StateAnnual average premiumsDifference from national average
Minnesota$1,708.1115.03%
Arkansas$1,646.5010.88%
West Virginia$1,629.649.74%
Louisiana$1,623.949.36%
New York$1,616.708.87%
New Jersey$1,615.258.77%
Connecticut$1,593.627.42%
Kentucky$1,587.106.88%
Arizona$1,581.506.50%
Ohio$1,553.684.63%
Source: AdvisorSmith

States with the least expensive cybersecurity insurance

StateAnnual average premiumsDifference 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%
Source: AdvisorSmith

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.