The Cyber Insurance Paradox: Rising Risk, Falling Premiums

**Executive Summary:** The report summarizes Fitch's outlook that U.S. cyber insurance premiums have declined year-over-year for multiple quarters and, despite remaining profitable in 2024, the market faces pressure from falling rates, fewer active policies, increased competition, and significant modeling challenges—especially around quantifying catastrophic ransomware risk—leading carriers to tighten coverage terms and emphasize underwriting discipline while warning that insurance is not a substitute for strong security controls.