According to Guy Carpenter’s Global Specialties Market Update, the cyber insurance market continues to expand, with both supply and demand showing consistent upward momentum despite short-term market pressures.
Guy Carpenter notes that the direct cyber market is experiencing growth across all regions, industries, and company sizes, even as pricing remains under pressure.
At the same time, the reinsurance market is evolving, with slightly fewer quota share cessions and a growing appetite among buyers for innovative coverage structures.
The firm observes that insurers are retaining more cyber risk than in previous years.
In 2023, approximately 40% of cyber premiums were ceded to reinsurers, down from about 50% in 2022. Guy Carpenter also highlights a trend of rising ceding commissions, which has persisted across several quarters.
In this changing landscape, Guy Carpenter emphasises the central role of intermediaries. Brokers are essential in facilitating discussions with clients to understand their cyber risk needs and working with reinsurers to encourage the development of innovative products and coverage solutions.
Given the risk of high-impact cyber events producing cascading losses, Guy Carpenter sees opportunities for creative solutions that combine multiple coverage types to address extreme tail risk. The firm also points out that reinsurers have broadly supported broker-led innovation, reinforcing the potential for ongoing advancement in the cyber insurance market.
“As insurers learn more about this evolving risk over time and through loss experience, they have become more sophisticated in their understanding and management of the cyber peril,” said Anthony Cordonnier, Global Co-Head of Cyber, Guy Carpenter.
