Insurers need to find new markets for cyber cover to make up for falling premiums, according to Howden.

The UK-based broker’s 2025 cyber report says premium growth is faltering and insurers must expand the pool by moving into regions with low penetration.

Rates have fallen faster over the past year as new capacity has entered the market. Insurers see cyber as a class with huge potential, and global combined operating ratios average 70%, according to the report.

Howden surveyed 1200 private company IT managers in France, Germany, Italy and Spain, and found 49% had suffered cyberattacks.

It estimates economic loss in the four nations was €307 billion ($545 billion) over the past five years, and says there is an opportunity to tap into these markets.

Business leaders there see cyber as a leading risk and are open to buying cover, but the market must do more to communicate its value and simplify its offering, Howden head of cyber international Jean Bayon de La Tour says.

While falling rates favour European buyers, Howden sees prices stabilising in the US following privacy-related claims that are unique to it regulatory and litigation environment.  

The report finds companies have got better at mitigating risk. The insurance industry has played a key role combining risk management services with traditional loss coverage, and it can drive resilience through premium incentives.  

“Cyber insurance is proving highly effective in both reducing and transferring risk,” Howden says. “In addition to paying claims, it incentivises the adoption of robust risk controls and provides access to crisis management services as standard, something only 20% of non-buyers currently have for incident response.”