Global Cyber Insurance GDPW Reached Nearly 13.5B in 2022

GDPW for cyber insurance can be estimated globally at close to $13.5 billion in 2022 rising towards $14 billion if captive insurers are also included, and with the US alone likely to make up over a half of the total.

Source: Insuramore | Published on June 22, 2023

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As an extension of its rankings of insurance providers worldwide, and based in part on guidance from some of the largest underwriters in the sector, Insuramore has updated its global ranking of insurer (carrier) groups as measured by cyber insurance gross direct premiums written (GDPW) in 2022. This analysis indicates that GDPW for cyber insurance can be estimated globally at close to $13.5 billion in 2022 rising towards $14 billion if captive insurers are also included, and with the US alone likely to make up over a half of the total.

With regards to the competitive structure of the market, it shows that the top 20 groups for this class are likely to have accounted for 70.3% of premiums worldwide and the top 50 for 92.3%, down from a respective 76.6% and 94.4% in 2021. Munich Re is likely to have been the global market leader with over USD 1 billion in GDPW – a figure which doubles including its cyber reinsurance premiums – and is followed in descending order by Chubb, Beazley, Fairfax Financial Holdings and AXA.

Overall, the research established that over 220 insurer groups were underwriting cyber risks on a direct basis by the end of 2022, up from over 180 one year previously. Furthermore, Insuramore has also identified as many as 360 individual MGA, MGU and cover-holder enterprises (a.k.a. underwriting agencies) around the world writing cyber insurance on a delegated underwriting authority basis.

Looking ahead, the trend towards fragmentation implied by the preceding comparison of the global market share of the top 20 and top 50 groups in 2021 and 2022 is likely to continue in 2023 due in part to the rapid growth of some smaller and medium-sized competitors and in part to the introduction of additional capacity from new sources. As examples, these new sources include carriers set up by specialist MGAs such as At- Bay, Coalition and Cowbell Cyber, the introduction of MIRIS as a mutual insurer writing cyber risks on behalf of Europe-based owner-member corporates, and the launch of Trium Cyber, writing cyber cover via Lloyd’s syndicate 1322. With regards to the latter, it may be noted that the Lloyd’s market in aggregate is believed to account for around 20% of global cyber GDPW.