Cyber Insurance Market to Grow Steadily Through 2030, Driven by SME Demand in Asia and Europe

The global cyber insurance sector is projected to continue its stable growth trajectory in 2025, buoyed by rising SME demand, regulatory momentum, and technological innovation in underwriting, according to AM Best.

Despite a softening market since 2023 due to increasing competition and declining rates, cyber insurance premiums reached $15.3 billion in 2024, marking a 7% rise. Industry forecasts expect annual growth exceeding 10% through 2030.

Small and medium-sized enterprises (SMEs), especially in underpenetrated regions like Asia and Europe, are seen as primary growth drivers amid heightened awareness of cyber threats such as ransomware, AI-enabled attacks, and business email compromises.

Insurers are responding to these risks with stronger underwriting, greater AI integration, and continuous cyber risk monitoring. Reinsurers and alternative capital sources—such as cyber catastrophe bonds—are also stepping in, with more than $750 million in capital deployed last year.

However, systemic cyber risk remains a critical concern. Experts warn that large-scale digital infrastructure failures could result in cascading losses that challenge insurers’ capacity to absorb claims. Moreover, insurers themselves are increasingly targeted due to their vast repositories of sensitive client data.