Demand for cyber reinsurance in 2027 is projected to be stable, while almost half of respondents to Moody’s Ratings 2027 reinsurance buyers survey expect the business to experience low to mid-single-digit price declines.
The ratings agency highlights the “continued healthy demand for cyber reinsurance,” however, just over a quarter of respondents aim to buy more cyber reinsurance coverage next year.
“Following a hard market in cyber insurance that ended in mid-2023, prices continue to fall, and terms and conditions are easing,” said Moody’s Ratings.
74% of respondents expect to buy the same amount of coverage, indicating fairly stable demand. Some respondents said that uncertainty around systemic risk is constraining growth in the cyber insurance market.
Moreover, around 72% of respondents expect that accelerated AI use will have little or no impact on their cyber reinsurance decisions over the next year. Moody’s Ratings clarified that it expects AI will have a significant impact on this line in the longer term.
As per the report, primary insurers have traditionally relied on quota share reinsurance for cyber protection, but now, a growing number of buyers are shifting to excess of loss covers as “they grow more confident in managing attritional losses in this area.”
At Munich Re’s briefing at the 2026 Rendez-Vous de Septembre (RVS) in Monte Carlo, Stefan Golling, a Member of the Board of Management, suggested that the industry has not done enough to close the significant cyber protection gap, indicating significant growth opportunities still present in the segment.
The post Cyber reinsurance demand expected to be stable in 2027: Moody’s Ratings survey appeared first on ReinsuranceNe.ws.
