The cyber insurance market achieved a $17 million underwriting gain in the September quarter, little changed from $18 million a year earlier, Australian Prudential Regulation Authority data shows.

Gross written premium for the long-tail commercial line grew to $53 million from $39 million; incurred claims blew out to $41 million from $28 million; and the average premium per risk declined to $6424 from $7144.

For the 2024-25 financial year, the market made a profit of about $11 million and GWP was $186 million, quarterly data shows.

The latest quarterly update is based on data from APRA-authorised cyber insurance providers.

Cyber used to be grouped under financial lines but is now a separate class under an updated accounting standard – Australian Accounting Standards Board 17 Insurance Contracts – that took effect in January 2023.

In APRA’s September-quarter update, cyber data dates back to the December quarter of 2023.

Actuarial firm Finity says take-up of cyber cover has continued to increase among mid-market and large organisations, but in the SME segment it remains “notably low” despite a rise in capacity and heightened awareness of the risk.

“As the cyber threat environment continues to grow, so too does the level of underinsurance,” Finity said in its annual Optima review of the industry.

The review says cyber is “now a highly competitive market, with a second year of rate reductions following a very hard market environment. New market entrants have spurred competition and increased market capacity as insurers see cyber as an opportunity for growth.”

Australia’s cyber premium pool in 2024-25 was about $700 million, including policies written by non-authorised insurers, according to Finity’s analysis.