2020 US Cyber Loss Ratios estimated at 73%, indicating an industry-wide underwriting loss

Based on its own research and data from S&P Intelligence, estimates the 2020 cyber loss ratio for the US market at 73%. If the expense ratio, which Fitch did not report for 2020, was close to previous year’s average of about 30%, the resulting overall combined ratio of 103% indicates an industry-wide underwriting loss for 2020 in the most important cyber insurance market.

For more insights on the fallout of the COVID-19 pandemic on the Cyber (Re-)Insurance Market check out our interview with Sie Lau.

While the hefty rate rises, reported as high as 50% for some carriers at the recent 1/1 renewals (), and many statements from the industry already indicated that 2020 was by the far the most challenging year for the cyber insurance market, the numbers by Fitch show for the first time the extent of increased cyber damages and claims.

This is the first time that the cyber insurance market in the US has on aggregate incurred an underwriting loss in cyber, with the combined ratios of the previous five years hovering around 80% (see our Cyber Market Statistics for more).

While the overall result of 2020 was negative for cyber insurers, the market continues its remarkable growth, increasing the written premiums by 29% during the year.


Fitch Ratings. 2021. “Sharply Rising Cyber Insurance Claims Signal Further Risk Challenges.” https://www.fitchratings.com/research/insurance/sharply-rising-cyber-insurance-claims-signal-further-risk-challenges-15-04-2021 (April 16, 2021).
Insuranceinsider. 2021. “Chubb Overhauls Cyber Appetite with Smaller Lines and Rate Demands.” https://insuranceinsider.com/p-and-c/articles/137725/chubb-overhauls-cyber-appetite-with-smaller-lines-and-rate-demands (January 31, 2021).

Daniel Kasper

Daniel Kasper is the principal of Cyber Economics.