Cyber Insurance Market Faces Structural Shift Amidst Ransomware Threats

• •The cyber insurance market is shifting with declining premiums and increased competition.
• •Only 10-20% of SMEs currently purchase cyber insurance, indicating significant market potential.
• •Q1 2026 saw 33 ransomware attacks in ANZ, highlighting urgent cybersecurity threats.

The cyber insurance market is experiencing a significant shift as premiums decline and competition increases, leading to concerns about sustainability. Jeffrey Gonlin, chief underwriter at Emergence Insurance, warns that the era of easy profits is over, with cumulative rate cuts eroding pricing buffers. Only 10-20% of SMEs in Australia and New Zealand currently purchase cyber insurance, indicating a largely untapped market. Recent data shows a rise in ransomware attacks, with 33 incidents reported in Q1 2026 alone, predominantly affecting the banking and financial sectors. A breach in New Zealand exposed 213 million records from a major social network, while an Australian car rental insurer compromised data for 300,000 customers. The current soft market presents a critical opportunity for brokers to engage reluctant SME clients before pricing resets.