Annual global cyber risk premium will hit $15.6 billion in 2025 and $16.4 billion in 2026, according to a report Swiss Re released Wednesday.
While premiums continue to climb, compound annual growth rate forecasts from 2023 on have been revised down to 5% from 6%.
This marks the third straight year of rate deterioration and reduced organic growth in cyber premiums, according to the report.
North America continues to command the majority of premium, at 66%, or about $10.28 billion. Europe is a distant second, at 21%, with Asia Pacific third, at 10%.
“The untapped cyber market growth potential of many economies across both Europe and APAC is evident and promising,” Swiss Re said.
Similarly, small and medium-sized enterprises have a comparatively low cyber insurance penetration rate, offering potential for growth.
On a global basis. SMEs and “micro SMEs,” those below $10 million in annual revenues, jointly account for 30% of global cyber premiums, about $4.7 billion.
Such SMEs have a roughly 10% to 20% cyber insurance penetration rate, with micro SMEs lower, at 5% to 10%, compared with 60% to 70% for large corporations over $1 billion in revenues and 40% to 50% for…
