Cyber premiums fall 11% in 2025 despite rising incidents, Lockton report finds

Cyber premiums were down 11% in 2025 despite a 20% year-on-year rise in incidents.

This is according to the Lockton Cyber Insurance Market Update, published on 12 February 2026, which revealed ”a rare divergence between underlying risk and insurance pricing”.

Commenting on the report, Carlo Ramadoro, head of cyber and technology at Lockton, explained that pricing appears to be “nearing the lower end of sustainability”.

He said this is as claims from prior underwriting years “weigh on insurer profitability and increase the risk of renewed volatility next year”.

He said: “Cyber insurance continues to favour buyers in 2025 and 2026 unlike at the turn of the decade when sharp price increases saw rates double overnight.

“Choice and competition mean premiums remain historically competitive, even as incidents rise, coverage diversifies and large cyber events become increasingly frequent and severe.”

Uncertain future

Despite the current soft market driving buyer-friendly conditions, Ramadoro stressed that “this stability may not last”.

“Historic claims, especially in the US, could challenge the market as losses from earlier years in 2023 and 2024 accumulate,” he continued.

“This could put pressure on insurer profitability and raise the risk of renewed pricing swings in 2027. However, any correction is unlikely to be as severe as in 2020.”

However, the report revealed that current aggressive growth trends continue to fuel appetite, with two new MGAs and one syndicate launching portfolios from scratch in the first quarter of 2026.

“Now remains an opportune time to purchase cyber insurance,” Ramadoro concluded.

“First-time buyers should be able to negotiate strong terms and conditions, and for existing buyers, it is a sensible moment to review and stress-test limits of liability.”