In large corporations, cybersecurity insurance budgets are experiencing a noticeable decline.
This trend is supported by data from AMRAE (the French Association for Risk and Insurance Management) for the year 2024, which indicates a general easing in the market conditions. Specifically, premium rates are decreasing, and deductibles are becoming more favorable, combined with a reduced growth in the volume of coverage underwritten.
Average Annual Premium Rates
| Premium Rate | Change from 2023 to 2024 | |
| Large Companies (Revenue > €1 billion) | 1.9% | -18% |
| Mid-sized Firms (Revenue €50 million to €1 billion) | 1.05% | -10% |
| Medium Businesses (Revenue €10 million to €50 million) | 0.38% | +2.1% |
| Small Businesses (Revenue €2 million to €10 million) | 0.16% | -4.2% |
| Microenterprises (Revenue less than €2 million) | 0.13% | -12% |
For the largest companies, this marks the first decrease in average annual premium rates in five years. The same trend is observed among mid-sized firms, and according to AMRAE, this pattern is expected to become more pronounced in 2025.
Average Deductibles
| Amount | Change from 2023 to 2024 | |
| Large Companies | €6.5 million | -15% |
| Mid-sized Firms | €110,000 | -49.7% |
| Medium Businesses | €17,900 | +16.8% |
| Small Businesses | €8,385 | +330.6% |
| Microenterprises | €2,648 | +273.6% |
Additionally, the average amount of coverage purchased is changing. Large enterprises are increasing their subscribed capacity slightly (+7.6%), now averaging €42.6 million, whereas smaller companies are reducing their coverage by about 5.8%, with an average of €4.6 million. Meanwhile, small and microbusinesses are significantly increasing their coverage levels, by roughly 42% and 65% respectively.
Market Contraction and Revenue Trends
Another notable development, after five years of growth, is a slight decline in the total amount of premiums written. The total has fallen to €317 million, a 3.4% decrease from €328 million in 2023. Large companies saw a particularly sharp decline, with premiums down by 9% to €238 million, representing about three-quarters of the total market volume. Conversely, underwriting activity among medium-sized (+66%), small (+26%), and microenterprises (+39%) has increased.
AMRAE interprets this shift as possibly due to intensified efforts by brokers along with a growing awareness among these companies of the importance of securing cybersecurity coverage.
Total Premium Volume
| Amount | Change from 2023 to 2024 | |
| Large Companies | €238.3 million | -9% |
| Mid-sized Firms | €54.6 million | +13% |
| Medium Businesses | €12.9 million | +66% |
| Small Businesses | €5.7 million | +26% |
| Microenterprises | €5.3 million | +39% |
A historical overview shows that premiums have grown steadily over recent years: from €87 million in 2019, rising each year to €130 million in 2020, €183 million in 2021, €316 million in 2022, €328 million in 2023, and then dipping slightly to €317 million in 2024.
Claims-to-Premiums Ratio
| 2019 | 84% |
| 2020 | 167% |
| 2021 | 89% |
| 2022 | 22% |
| 2023 | 12% |
| 2024 | 17% |
The ratio of claims paid out to premiums collected has increased, mainly due to two very large claims (exceeding €10 million), which were not present in 2023. Nonetheless, this rise remains consistent with the overall decline in premiums and deductibles. It is notably lower than the peaks observed during the early phases of the AMRAE study—84% in 2019, when XXL claims amounted to about €130 million in compensation, and 167% in 2020 with approximately €90 million paid out for large claims.
Claim Damage Expenditures
| 2019 | €73 million |
| 2020 | €217 million |
| 2021 | €164 million |
| 2022 | €71 million |
| 2023 | €38 million |
| 2024 | €55 million |
Between 2023 and 2024, there has been a significant increase in the number of small claims (<€300,000). The number of reported claims has almost returned to 2021 levels for both large companies and mid-sized firms. The AMRAE suggests this may partly be due to the impact of the LOPMI law, which requires claims to be reported within 72 hours to qualify for compensation. Consequently, regardless of company size, the volume of reported claims has grown substantially, while the total indemnity paid out has not increased at the same rate. In summary, the cybersecurity insurance market for large organizations is experiencing a cautious retrenchment, with premiums slightly decreasing and the total volume of coverage growing more slowly, reflecting a maturation and increased risk awareness within the sector.
