{"id":26926,"date":"2026-06-26T16:00:00","date_gmt":"2026-06-26T14:00:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=c2c6ae22f1c5399b4f66f5edbf7e3107"},"modified":"2026-06-26T16:00:00","modified_gmt":"2026-06-26T14:00:00","slug":"bests-market-segment-report-u-s-cyber-markets-premium-grows-slightly-surplus-lines-writers-continue-to-increase-role","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=26926","title":{"rendered":"Best\u2019s Market Segment Report: U.S. Cyber Market\u2019s Premium Grows Slightly; Surplus Lines Writers Continue to Increase Role"},"content":{"rendered":"

OLDWICK, N.J.--(BUSINESS WIRE)--#insurance<\/a>--A pair of distinct sub-markets have evolved within the U.S. cyber insurance space, one dominated by surplus lines carriers writing primary and excess cyber-specific policies and the other focused on endorsements to commercial policies, according to a new AM Best <\/b>report. <\/b>The results between the two vary, with third-party claims growing more rapidly within the surplus lines side of the market.<\/p><\/a><\/a>

The combined overall premiums generated from cyber insurance coverage increased slightly to $7.5 billion in 2025, compared with $7.1 billion in the prior year. That modest increase in premium growth was due mainly to companies moving some of their cyber business from offshore to a U.S.-domiciled entity, indicating flat or very little growth in the segment\u2019s U.S. premium.<\/p>

\u201cWhat\u2019s important to note here is that for several years now, large companies, with mature captive insurers and sophisticated cyber risk mitigation practices, have moved away, in part or entirely, from the commercial market and insured their cyber exposure via their captives,\u201d said Fred Eslami, associate director, AM Best. \u201cThis is not reflected in the NAIC Cyber Supplement, which serves as a core source of information on this segment.\u201d<\/p>

The industry-wide cyber loss ratio ticked upward by 4.3 percentage points to reach 53.0% last year, marking its second consecutive increase. Perhaps more importantly, the segment\u2019s loss ratio peaking over 50% marked the first time since the ransomware spike of the COVID era that led to remote work, in many cases without proper security measures in place. \u201cThat ransomware surge led to an immediate increase in pricing,\u201d Graham said. \u201cHowever, this time the loss ratio increase is occurring as pricing is still declining and even accelerating the decline.\u201d<\/p>

As for the shifting dynamic within the cyber market, the report notes that surplus lines insurers have consistently grown their share and now have almost two-thirds of all cyber insurance by premium. Since 2021, the paid loss ratio for surplus lines carriers remains below that of admitted carriers. However, the incurred loss ratio for surplus lines carriers, 55.9, is higher than that of admitted carriers, 50.2. \u201cThe gap is actually narrower than last year,\u201d said Christopher Graham, senior industry analyst, AM Best. \u201cBut consecutive years of a higher incurred loss ratio suggest surplus lines carriers may be writing different business than admitted carriers\u2014 particularly business prone to a longer tail for which losses take longer to settle.\u201d<\/p>

Among the report\u2019s other key takeaways:<\/p>