Dani Tobler.Head Cyber Reinsurance at Swiss Re
“North America dominates with 70% premium share followed by Europe (19%) and APAC (8%) according to Swiss Re data. This not only illustrates the varying cyber market maturity levels around the globe but also underpins the untapped cyber market growth potential of many economies in Europe and APAC,” said Dani Tobler.Head Cyber Reinsurance at Swiss Re
Approximately 80% of Large Corporates (with annual revenue above 10bn USD) have adopted cyber insurance, only around 10% of SMEs (with annual revenue below 100m USD) have done so
Zurich: The era of rapid, double-digit expansion in the cyber insurance market may be cooling, but does this mark the end of the cyber growth story? Not at all, according to an analysis published by Swiss Re today.
According to the analysis, the cyber market grew at an impressive rate of 32% annually from 2017 to 2022. The global premium doubled from 2017 to 2020 and again from 2020 to 2022.
During this period, forecasts were projecting a continuation of these very strong growth rates.
Today a new market reality has settled in, with lower growth and a phase of reducing insurance rates.
Market data from 2023 and 2024 indicates that many market participants have been overestimating the market growth and were too optimistic in their cyber premium projections.
However, forecasts of 20% annual growth in the future keep being mentioned, almost as if this was a law of nature. This may sound exciting, but is it also plausible?
Swiss Re’s market data helps uncover the underlying dynamics.
Dani Tobler, Head Cyber Reinsurance at Swiss Re, comments: “When looking at market developments and exploring the Swiss Re Cyber Data Lake, we expect a continued phase of growth – however with different drivers and regional variation.
“The cyber market is far from saturated. For 2025, Swiss Re is estimating a market premium of 16.6bn (+8% over 2024) and the cyber protection gap remains huge. On the one hand, there is significant geographical potential as can be seen in the uneven distribution of cyber premium across regions.
The Swiss Re Cyber Data Lake is Swiss Re’s in-house database of detailed cyber insurance exposure worldwide. It offers a comprehensive view, representing approximately 70% of the global cyber insurance market, making it an invaluable resource for understanding cyber insurance market and loss trends.
“North America dominates with 70% premium share followed by Europe (19%) and APAC (8%) according to Swiss Re data. This not only illustrates the varying cyber market maturity levels around the globe but also underpins the untapped cyber market growth potential of many economies in Europe and APAC,” said Dani Tobler.
Dani Tobler points out however that market penetration for cyber insurance is not evenly spread, with SMEs still behind in relative adoption compared to larger corporates.
“There are distinct differences in cyber insurance penetration across customer segments,” he said.
While according to Swiss Re estimation approximately 80% of Large Corporates (with annual revenue above 10bn USD) have adopted cyber insurance, only around 10% of SMEs (with annual revenue below 100m USD) have done so.
“As a result, organic growth in the large corporate sector is largely limited to clients purchasing higher limits, whereas the potential in the SME market remains significant through clients purchasing new policies,” he pointed out.
“In short, there is a huge cyber protection gap for small and medium sized companies. The SME segment offers a major growth opportunity for cyber insurance globally. However, serving small and medium size businesses requires investment and adapted approaches,” Tobler outlined.
Dani Tobler is emphatic that there is a significant opportunity within the SME segment for market growth, which looks highly underinsured relative to the potential risks for losses owing to cyber-attacks. But he is clear that this opportunity should not be treated unrealistically either.
The cyber insurance market continues to present a compelling growth opportunity, outpacing other lines of business. However, it’s crucial to maintain realistic expectations for future growth, said Tobler.
Market data suggests that as from 2023 the cyber market moved from a rate increase-driven and double-digit growth trend to a rather single-digit exposure growth scenario. Going forward market participants need to focus on expanding the client base in order to grow their business sustainably.
According to Swiss Re, the largest potential lies in the SME opportunity: To strengthen resilience against cyber threats, the insurance industry must not only broaden its geographic footprint, but also tailor risk transfer products and services to the specific needs of this client segment and find efficient ways to distribute them.
The Swiss Re Cyber Data Lake is Swiss Re’s in-house database of detailed cyber insurance exposure worldwide. It offers a comprehensive view, representing approximately 70% of the global cyber insurance market, making it an invaluable resource for understanding cyber insurance market and loss trends.