Cyber Pricing Trends
Pricing in the cyber insurance market has continued to fall from the peak prices of early 2022; however, the pace of decreases slowed in 2024 compared to 2023. Pricing remains elevated at double the pre-hard market year of 2019. Expect these pricing rate decreases to continue as we move into 2025, barring any widespread cyberattacks that result in a greater financial impact than any event we’ve seen.
Cyber Insurance Market Rate Index (2019:1H = 1.0)
The Pace of Rate Decreases Slowed in 2024
Technology E&O Pricing Trends
By looking at specific segments of our portfolio, we can see a more nuanced picture of how different industries and sizes of companies have fared throughout 2024. Specifically, when it comes to companies purchasing a package policy that includes both technology E&O and cyber coverage, we saw 81% of clients recognize cost savings in the second half of 2024.
We expect the soft market conditions with favorable pricing to continue for most segments in 2025. However, not all decreases will be equal. Larger organizations will see smaller decreases than small organizations, and rate decreases in the technology sector will be smaller than in other industries considering the amount of rate relief that technology companies have realized over the past few years.
