Cyber gross written premiums could double to $30b globally

The top 10 reinsurers account for 87% of the global cyber GWP.

The top five cyber reinsurers currently account for 62% of cyber gross written premium (GWP), whilst the top ten account for 87%, underscoring high market concentration, Howden Re’s Into the Cyberverse report showed. 

The report notes that recent shifts in quota share cessions—from 57% five years ago to 45% today—are altering market dynamics. 

Non-proportional reinsurance is becoming more attractive for managing tail risk, a trend expected to accelerate, adding pressure on reinsurers and the need for additional retrocession capacity.

The report also projects that global cyber insurance premiums could double to $30b. In this scenario, the share of premiums ceded through quota share agreements would fall from 32% today to 25%, while non-proportional cover would rise to 6.5% from 4%. 

The projected industry loss ratio for a 1-in-200 aggregate exceedance probability (AEP) event would rise to 326%, up from 272% today.