US cyber insurance market triples in size since 2020

The U.S. domestic cyber insurance market has expanded significantly, with direct premiums written (DPW) reaching nearly $7.5 billion in 2025, up from $2.75 billion in 2020. When including premiums from surplus insurance companies domiciled outside the U.S., the total DPW reached approximately $9.5 billion, representing a 3.5% increase over 2024.

A report from the National Association of Insurance Commissioners (NAIC) indicates that the market is splitting into two distinct sub-markets. One is a surplus lines market that writes primary and excess cyber-specific policies, which currently holds nearly two-thirds of all cyber premium. The other is an admitted market focused on endorsements to other commercial policies.

While primary cyber policies account for more than 60% of U.S. cyber premium, the majority of total policies in force are endorsements. These endorsements, which bundle modest cyber protection into other commercial lines, accounted for nearly 53% of the 5.8 million policies in force in 2025, despite making up only 4% of the total DPW.