As the cyber insurance market continues to evolve and businesses become more aware of the importance of cybersecurity, it is possible that premiums could stabilize or even decrease over time. However, for now, the complex and dynamic nature of cyber risk contributes to the relatively high costs of cyber insurance.  Furthermore, the insurance companies now require certain cyber security measures to issue cyber insurance policies.

The high cost of cyber insurance is caused by several factors including increasing frequency and severity of cyber incidents, rising costs of cyber attacks, lack of historical data, complex risk assessment, high costs of remediation, limited pool of insurers, moral hazard concerns, global nature of cyber risk, regulatory and legal changes, reinsurance costs, among others.