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Mar 2025

Global: Cyber market pegged at $16.6bn in 2024

Source: Middle East Insurance Review | Mar 2025

The cyber market continues to evolve as a core class of insurance, said Guy Carpenter in its new report, ‘Behind the Firewall: 2024 Global Cyber Industry Insights’. 
 
After very large compound rate increases in 2021 and 2022, the market had stabilised while experiencing modest softening in certain areas. Rates flattened or decreased in 2023, continuing to adjust throughout 2024. This culminated in a market that expanded to an estimated $16.6bn in 2024, with North America making up the majority at $10.5bn, Europe at $3.9bn, APAC at $1.7bn and rest of the world at $0.5bn. New growth is being driven by under-penetrated industry segments, developing regions and new products. 
 
The report also investigated the aggregation potential these regions presented through the broker’s vendor model partners. It concluded that divergence between models is partly driven by differences in interpretation of cyber events and how these can materialise. The modelled global aggregation loss potential for the industry varies from $20bn to $46bn for 2024 at the 1-in-200-year return period, leading to a market loss ratio between 120% and 277%. M 
 
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