Surging ransomware claims in 2020 and 2021 led to a major market correction that stabilised conditions last year as improved cyber hygiene among insureds helped prevent or mitigate attacks.

Howden, the global insurance intermediary group, said cyber insurance was entering a new phase of development as non-US territories were set to capture 54 per cent of new business in the lead up to 2030.

The company’s fourth annual cyber report, titled Risk, Resilience and Relevance, said:

• With no sign of the threat environment relenting, strong competition and pricing reductions of 15 per cent from the 2022 peak, offer buyers an opportunity to secure protection at favourable terms

• Stable market conditions, supported by robust risk controls among insureds, provide the foundations for exposure-led growth, ongoing profitability and innovation

• Growth is set to be driven by international markets and small and medium-sized enterprises

Sarah Neild, head of Cyber Retail UK at Howden said: “Favourable dynamics have persisted into 2024 with the cost of cyber insurance continuing to fall despite ongoing attacks, heightened geopolitical instability and the proliferation of Gen AI.

“At no other point has the market experienced the current mix of conditions: a heightened threat landscape combined with a stable insurance market underpinned by robust risk controls.

“The foundations for a mature cyber market, with innovation and exposure-led growth at its core, are now in place.”

Howden said their research showed that more than half of premium growth up to 2030 was likely to emanate from non-US territories.

In the major European economies of Germany, France, Italy and Spain alone, the premium uplift potential in just replicating penetration levels achieved in more mature markets is in the region of 700 million euros.

• To see Howden’s fourth annual Cyber report - Risk, Resilience and Relevance, see Related Media

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