A new report on the competitive structure of the global cyber insurance market shows that 20 insurance groups globally account for more than 70 per cent of worldwide gross direct premiums written (GDPW) in cyber insurance in 2022, down from generating 76.6 per cent of all premiums worldwide in 2021.

The top 50 insurance groups accounted for 93.3 per cent of cyber premiums worldwide, down from 94.4 per cent in 2021 – all indicating that the market is becoming less concentrated and more fragmented. Insuramore Ltd., the researchers ranking insurer and carrier groups underwriting cyber insurance, says this is due in part to the introduction of additional capacity from new sources and the rapid growth of smaller and medium-sized competitors. The top 100 groups worldwide accounted for an estimated 97.8 per cent of the total global GDPW for this line in 2022, they add.

Overall, Insuramore’s research shows that more than 220 insurer groups were underwriting cyber risks on a direct basis by the end of 2022, up from 180 in 2021. “Furthermore, Insuramore has also identified as many as 360 MGA (managing general agency), MGU (managing general underwriter) and cover-holder enterprises (underwriting agencies) around the world writing cyber insurance on a delegated underwriting authority basis.” 

They continue, saying Munich Re is likely to have been the global market leader with more than USD $1-billion in GDPW in 2022. This company is followed, in descending order, by Chubb, Beazley, Fairfax Financial Holdings and AXA. Fairfax Financial’s cyber business in 2022 is estimated to represent just over six per cent of global market share, according to Insuramore’s research.

Cyber insurance, they say, is designed to protect organizations and individuals from digital threats, including data breaches, malicious cyber hacks on computer systems and denial-of-service attacks. “This analysis indicates that GDPW for cyber insurance can be estimated globally at close to USD $13.5-billion in 2022, rising towards USD $14-billion if captive insurers are also included,” they write. “The U.S. alone (is) likely to make up over half of the total.”