Cyber insurance premiums unexpectedly declined in 2025, even as the number and severity of cyberattacks continued to increase, according to a report from insurance broker Lockton released February 13, 2026.
Lockton reported an 11% drop in premiums across its cyber insurance portfolio for the year. The most significant reductions occurred in the first half of 2025, with more moderate decreases observed in the latter six months. Lockton anticipates further declines in premiums, at least through the first half of 2026.
The decrease in premiums comes after a period of substantial increases in cyber insurance costs. In April 2025, insurers predicted a turning point, anticipating higher premiums due to worsening loss ratios, as reported by Risk.net. Jess Fung, North American cyber analytics lead at Guy Carpenter, noted at the time that 2022 had been a “relatively quiet” year for cyberattacks, contributing to rate decreases in 2023.
Despite the downward trend in pricing, the demand for cyber insurance remains high, reflecting the ongoing and pervasive nature of cyber threats. Data released by the National Association of Insurance Commissioners in early February 2026 indicated continued growth in the cyber insurance market, though specific figures were not immediately available.
The drop in premiums is attributed to increased competition among insurance carriers, according to Risk.net. This competition has driven down prices despite the escalating frequency and severity of cyberattacks.
The unexpected decline in cyber insurance costs presents a complex situation for businesses and insurers alike. While lower premiums offer some financial relief, the continued threat landscape necessitates robust cybersecurity measures and careful risk management strategies.