Cyber Insurance Rates Fell 5% in 2026 Amid Oversupply, Swiss Re Reports

Global cyber insurance rates fell approximately 5% in 2026, marking the fourth consecutive year of declines despite a growing landscape of digital threats, according to a report from reinsurer Swiss Re. The continued price softening has created a buyers' market where the supply of coverage is outpacing demand from businesses.

Market Dynamics and Regional Differences

The drop in 2026 follows a more significant global rate decrease of roughly 13% in 2025. Swiss Re attributes the trend to intense competition among carriers, which has pushed prices down even as risks from ransomware, artificial intelligence, and geopolitical tensions rise.

However, the market is not uniform globally. Key regional trends include:

• United States: Prices are beginning to stabilize as insurance carriers react to profitability pressures.
• Europe: The market continues to experience sharper rate declines driven by strong price competition.

Slower Growth Despite Expanding Market

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While the overall market for cyber insurance continues to grow, falling prices are slowing the pace of premium expansion. Swiss Re projects global cyber insurance premiums will reach $16.4 billion in 2026 and grow to $17.1 billion in 2027. This represents a steady but moderated 5% compound annual growth rate (CAGR) since 2022.

North America remains the dominant market, accounting for approximately two-thirds of global premiums with a projected $10.7 billion in 2026. Europe represents about 21% of the market at $3.42 billion.

The Impact of Artificial Intelligence

Swiss Re noted that artificial intelligence is a significant factor reshaping cyber risk. The technology acts as a double-edged sword, empowering criminals to automate attacks and create sophisticated phishing campaigns while also providing companies with enhanced tools for threat detection and incident response.

The reinsurer stated that AI is primarily amplifying existing cyber risks rather than creating entirely new categories of insured loss. While AI-related claims remain limited for now, Swiss Re advises that insurers must closely monitor technological and regulatory developments and ensure policy language provides clear coverage.