U.S. Cyber Insurance Market Performance Analysis 2023

This document is a report analyzing the performance of the U.S. Cyber insurance market for the year 2023, as reported by the National Association of Insurance Commissioners (NAIC). It outlines key findings, including a 1 percent decrease in reported premiums, totaling $7.18 billion, marking the first year without growth since the inception of the NAIC statutory filing supplement. The report details the decline in written premium per policy and the improvement in the overall loss ratio, which decreased to 42 percent. The document further explains trends in standalone and package insurance, noting that while standalone loss ratios increased, package loss ratios improved significantly. It also discusses the rising frequency of claims and the shift in the nature of claims from first-party to third-party. The report concludes with insights into market concentration and the performance of insurers based on the size of the insured, providing a comprehensive view of the current state of the Cyber insurance industry.