Global insurer Chubb remains the largest writer of cyber insurance in the US, with direct premiums written (DPW) in 2023 amounting to roughly $574 million, according to AM Best.
While Chubb remains top of the list, XL Reinsurance America Group (AXA XL) has moved up to the 2nd spot with $487 million DPW, surpassing Fairfax Financial (USA) Group. While Fairfax Financial saw a -17.8% change in DPW, dropping to $463 million from $563 million and taking the 3rd spot. Despite these shifts, the companies in the top three have remained the same year-on-year.
The top 10 cyber insurers have largely stayed the same, although in a different order, except for Starr International Group, which made a notable jump from 208th to the 10th spot. The firm went from not writing cyber insurance in 2022 to $260 million DPW in 2023.
Berkshire Hathaway Insurance Group has also entered the top 10, moving from 12th to 6th place with a significant 26.6% increase in its DPW, totalling $289 million.
In contrast, Zurich Insurance US PC Group witnessed the largest decrease in DPW, dropping from $253 million to $199 million, a -21.1% change, resulting in a fall from the 9th to the 13th spot.
Similarly to Starr, both AmTrust Group and Intact US Insurance Group are now in the top 20, unlike in 2022. AmTrust, in particular, experienced the largest year-on-year growth, with a 46.7% increase, totalling $170 million DPW.
Regarding the total DPW from the top 5 cyber insurers, AM Best reported a -3.9% change. Meanwhile, the top 10 and top 20 saw positive changes of 4.4% and 2%, respectively.
“Managing systemic risk has taken precedence over pricing, resulting in lower pricing. Insurers are willing to take pricing cuts in exchange for diminishing their exposures,” AM Best concluded.
