Key Takeaways
- In 2024, the average US cyber insurance policy carried a premium of $1,621 a year – about $4.44 a day, and 12.7% below the 2022 peak of $1,856.
- Prices fell while risk rose. Premiums written by US insurers have now fallen two years running, dropping 2.3% to $7.08 billion in 2024, even as claims climbed almost 40% to nearly 50,000.
- Of the 38,496 claims that closed, 28,555 – 74% – closed without any payment. Only 9,941 ended in a payout.
The Story Behind the Numbers
There is no single price tag for cyber insurance, so we calculated one. The NAIC reports what US insurers collect and how many policies they cover, which gives us a simple average:
Average premium = Direct written premium ÷ Policies in force
In 2020, that number was $685. By 2022 it hit $1,856 – a 171% jump in two years. Then it reversed. The average fell to $1,659 in 2023 and $1,621 in 2024, or 12.7% below the peak. It was the second straight year of falling premiums, down 2.3% to $7.08 billion. Prices did not fall because the internet got safer. Claims rose almost 40% in 2024, to nearly 50,000. The price of the risk went down while the risk itself went up.
Why This Data Is Important
A premium is a price on risk. At $1,621 a year, insurers valued one business’s cyber exposure at roughly $4.44 a day. They cut that price in the same year that incidents got more common.
Two numbers put that in context. Policy counts barely moved, falling 0.03%, so the drop was pricing, not demand. And most claims cost insurers nothing: of the claims that closed, 28,555 ended without payment against 9,941 that paid out.
Insurance pays after the damage. It does not prevent it from happening. Hiding your IP address and a separate, anonymous email work before an incident, not after it has happened.
Looking Ahead: Future Outlook
Today’s cheaper cover is a bet that defenses are holding. Claims are rising while prices fall, and that gap cannot widen forever. Sooner or later, price follows loss.
This market is not built for individuals. Nobody prices your risk or reimburses it – the basics of protecting yourself are all you have, and they have not changed.
Source & Methodology
All figures come from the NAIC 2025 Report on the Cybersecurity Insurance Market, covering 2024 filings by US-domiciled insurers. The average premium is direct written premium divided by policies in force, excluding alien surplus lines. It blends small add-on policies with large corporate ones, so read it as a market trend, not a quote.