The US domestic cyber insurance market almost tripled in size since 2020, with direct premiums written reaching nearly $7.5 billion in 2025, up from $2.75 billion in 2020, according to a new NAIC report. Including surplus insurers outside the US, total premiums rose to $9.5 billion, a 3.5% increase over 2024. More than 60% of US cyber premium comes from primary policies, but most policies by count are endorsements to other commercial policies, which generate low premiums but are high in volume.
Domestic policies in force rose 33% over 2024 to about 5.8 million. Endorsement policies increased 53.8%, while primary policies grew 13.6%. Surplus policies dropped 45.3%. Endorsements made up 53% of policies in force but only 4% of premiums. Surplus lines carriers now hold nearly two-thirds of all cyber premium, with the market splitting into surplus lines for primary and excess cyber-specific policies and admitted markets focused on endorsements.
The NAIC noted a persistent protection gap: only about 1% of global economic cyber losses are insured, despite losses estimated between $1 billion and $10 billion. The loss ratio for cyber insurance worsened to 53 in 2025 from 48.7 in 2024, as claims severity increased for large and medium businesses, though frequency declined. The report suggests improved underwriting and controls may be reducing claim numbers but not the cost of major incidents.
