The U.S. cyber insurance market is now a multi-billion dollar marketplace
In response to the growing cyber insurance marketplace, the NAIC began an annual report on Cybersecurity Insurance and Identity Theft Coverage Supplement. In the third edition of the report published in 2019, the NAIC also denotes the increasing importance of this insurance line to insurers. The sheer amount of personal information that the insurance industry handles with respect to both policyholders’ financial and personal health information, also makes the insurance industry a target of cybersecurity issues.
Premium and market share
The overall cybersecurity insurance marketplace wrote approximately $3.6 billion in Direct Written Premiums, a 14.54% increase over 2018 data. The total Admitted Market for cybersecurity insurance coverage was about $2.03 billion and included both standalone and package policy coverage. The NAIC’s notes that this amount represents a 6.81% increase over 2017 numbers.
Standalone cyber insurers reported to the NAIC about $1.11 billion in Direct Written Premiums, while those selling cyber insurance as part of a package policy reported $915 million in premium. According to the latest NAIC report, there are approximately 500 insurers currently providing both businesses and individuals with cyber insurance. Approximately 96% of those insurers offering cybersecurity insurance do so as part of a package policy.
The following is a ranking of both the top individual insurers for Standalone Cyber as well as Packaged Cyber Insurance Products.
The Top Individual Insurers For Standalone Cyber in the U.S.
| Rank | NAIC# | Company Name | Direct Written Premium | Market Share | Loss Ratio | Cumulative Market Share |
|---|---|---|---|---|---|---|
| 1. | 968 | AXA INS GRP | 255,874,528 | 23.0% | 57.2% | 23.0% |
| 2. | 12 | AMERICAN INTL GRP | 232,312,591 | 20.9% | 36.1% | 43.8% |
| 3. | 3548 | TRAVELERS GRP | 112,920,719 | 10.1% | 27.7% | 54.0% |
| 4. | 37540 | BEAZLEY INS CO INC | 100,860,728 | 9.1% | 6.1% | 63.0% |
| 5. | 212 | ZURICH INS GRP | 43,315,425 | 3.9% | 18.2% | 66.9% |
| 6. | 23 | BCS INS GRP | 39,534,843 | 3.5% | 13.5% | 70.5% |
| 7. | 158 | FAIRFAX FIN GRP | 38,145,472 | 3.4% | 23.4% | 73.9% |
| 8. | 3098 | TOKIO MARINE HOLDINGS INC GRP | 34,858,640 | 3.1% | 38.2% | 77.0% |
| 9. | 111 | LIBERTY MUT GRP | 33,427,580 | 3.0% | 43.6% | 80.0% |
| 10. | 218 | CNA INS GRP | 25,032,362 | 2.2% | 13.7% | 82.3% |
| 11. | 4698 | ASPEN INS HOLDING GRP | 21,073,367 | 1.9% | 61.6% | 84.2% |
| 12. | 3416 | AXIS CAPITAL GRP | 19,592,044 | 1.8% | 1.6% | 85.9% |
| 13. | 785 | MARKEL CORP GRP | 16,542,650 | 1.5% | 60.2% | 87.4% |
| 14. | 4904 | INTACT FINANCIAL GRP | 13,439,331 | 1.2% | 53.2% | 88.6% |
| 15. | 501 | ALLEGHANY GRP | 11,101,174 | 1.0% | 12.1% | 89.6% |
| 16. | 4666 | HISCOX INS GRP | 10,595,387 | 1.0% | 26.8% | 90.6% |
| 17. | 98 | WR BERKLEY CORP GRP | 10,176,206 | 0.9% | 20.4% | 91.5% |
| 18. | 31 | BERKSHIRE HATHAWAY GRP | 10,069,160 | 0.9% | 82.7% | 92.4% |
| 19. | 761 | ALLIANZ INS GRP | 9,743,451 | 0.9% | .03% | 93.2% |
| 20. | 783 | RLI INS GRP | 8,843,152 | 0.8% | 4.9% | 94.0% |
The Top Individual Insurers For Package Cyber Insurance Products in the U.S.
Reported Total Direct Written Premiums for the cybersecurity insurance package policy marketplace was $893.3 million, increasing a little more than 2% year-over-year. According to the NAIC, the top 10 insurers in this category represent approximately 71% of the total market, while the top 20 represent 82.8% of the entire marketplace.
| Rank | NAIC# | Company Name | Direct Written Premium | Market Share | Loss Ratio | Cumulative Market Share |
|---|---|---|---|---|---|---|
| 1. | 626 | CHUBB LTD GRP | 320,729,113 | 35.7% | 28.6% | 35.7% |
| 2. | 218 | CNA INS GRP | 58,324,863 | 6.5% | 32.5% | 42.2% |
| 3. | 3416 | AXIS CAPITAL GRP | 56,408,989 | 6.3% | 9.1% | 48.5% |
| 4. | 91 | HARTFORD FIRE & CAS GRP | 39,704,460 | 4.4% | 16.4% | 52.9% |
| 5. | 3219 | SOMPO GRP | 34,054,366 | 3.8% | 56.7% | 56.7% |
| 6. | 3548 | TRAVELERS GRP | 33,309,900 | 3.7% | 4.5% | 60.4% |
| 7. | 111 | LIBERTY MUT GRP | 33,067,460 | 3.7% | 34.1% | 64.1% |
| 8. | 23 | BCS INS GRP | 29,969,858 | 3.3% | 6.3% | 67.4% |
| 9. | 457 | ARGO GRP US INC GRP | 20,593,376 | 2.3% | 27.4% | 69.7% |
| 10. | 31 | BERKSHIRE HATHAWAY GRP | 18,564,643 | 2.1% | 68.9% | 71.8% |
| 11. | 244 | CINCINNATI FIN GRP | 16,785,618 | 1.9% | 7.0% | 73.6% |
| 12. | 88 | THE HANOVER INS GRP | 12,761,012 | 1.4% | 9.1% | 75.1% |
| 13. | 69 | FARMERS INS GRP | 12,640,773 | 1.4% | 3.6% | 76.5% |
| 14. | 37540 | BEAZLEY INS CO INC | 10,087,075 | 1.1% | 24.4% | 77.6% |
| 15. | 3098 | TOKIO MARINE HOLDINGS INC GRP | 9,733,560 | 1.1% | 3.4% | 78.7% |
| 16. | 98 | WR BERKLEY CORP GRP | 9,283,630 | 1.0% | 0.3% | 79.7% |
| 17. | 7 | FEDERATED MUT GRP | 8,879,172 | 1.0% | 2.5% | 80.7% |
| 18. | 140 | NATIONWIDE CORP GRP | 7,237,205 | 0.8% | 15.1% | 81.5% |
| 19. | 785 | MARKEL CORP GRP | 5,970,595 | 0.7% | 0% | 82.2% |
| 20. | 4790 | MMIC GRP | 5,804,655 | 0.6% | 14.6% | 82.8% |
Links to our other NAIC 2020 Market Share Reports:
- NAIC 2020 Market Share Report: The Top 25 Insurers in the United States – All Lines
- NAIC 2020 Market Share Report: The Top 25 Homeowners Multi-Peril Insurers
- NAIC 2020 Market Share Report: The Top 25 Workers’ Compensation Insurers
- NAIC 2020 Market Share Report: The Top 25 Commercial Auto Insurers
- NAIC 2020 Market Share Report: The Top 25 Other Liability Insurers
- NAIC 2020 Market Share Report: The Top 25 Private Passenger Auto Insurers (U.S.)
