NAIC Report Finds Cyber Insurance Market Has Nearly Tripled Since 2020 as Cyber Risk Grows
Analysis of 2025 data shows policies in force up 33% and reported claims up 20%, with demand holding strong in a more competitive market
As cybersecurity risks continue to increase and evolve, the National Association of Insurance Commissioners’ (NAIC) Report on the Cybersecurity Insurance Market for the 2025 calendar year finds that the cyber insurance market is growing alongside them. Total U.S. domestic cyber direct written business has nearly tripled since 2020, making cyber insurance one of the fastest-expanding segments in insurance.
“Cyber threats affect businesses of every size and, by extension, the consumers whose personal information they hold. The steady growth of this market shows more organizations are turning to insurance to help manage that risk,” said Florida Insurance Commissioner Michael Yaworsky, chair of the NAIC’s Innovation, Cybersecurity, and Technology (H) Committee. “This report gives state insurance regulators a clear, data-driven view of how the market is responding as threats evolve, helping us ensure coverage remains available, financially sound, and protective of policyholders and consumers alike.”
The report highlights several key findings:
- U.S. domestic cyber insurance direct written business has nearly tripled since 2020, growing from $2.75 billion to $7.46 billion (or $9.46 billion, including alien surplus lines), demonstrating sustained demand even as premium growth moderates and market conditions stabilize.
- Reported cyber insurance claims increased 20% to 56,323, underscoring that cyber incidents remain a significant and rising business risk and reinforcing the role insurance plays in managing financial exposure.
- Domestic policies in force rose 33% to 5.84 million, driven largely by cyber endorsements to other commercial policies, which now account for nearly two-thirds of policies in force.
Resources
Report on the Cybersecurity Insurance Market: 2025 Reporting Year
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. State insurance regulators, through the NAIC, establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.