S&P Global Ratings has projected that annual cyber insurance premiums will reach approximately $23 billion by 2026, up from an estimated $14 billion at the end of 2023, reflecting a growth rate of 15-20% annually. This growth is attributed to enhanced underwriting profitability and rising cyber insurance rates that have been implemented since 2021. However, S&P cautions that the industry’s stability could be jeopardized by fluctuations in claims frequency and severity, particularly due to the evolving cyber threat landscape influenced by AI advancements. It emphasizes the necessity for insurers to adopt proactive measures to sustain profitability and effectively manage risks, especially as competition within the market increases.
