The market for cyber insurance has begun to stabilize after a surge in ransomware attacks in recent years propelled a steep rise in premiums, observers say. Cyber insurance can pay ransoms to hackers who lock company technology systems, or it can help offset the cost of responding to data breaches. The insurance itself remains relatively niche—insurer Munich Re Group estimated the global value of cyber insurance premiums at $9.2 billion at the outset of 2022, compared with hundreds of billions of dollars spent in the U.S. alone for commercial insurance, according to the Insurance Information Institute—but events spurring premium increases have become familiar. But not all companies can, as some must have cyber insurance to work with partners, Mr. McNicholas said. “The cyber insurance community has to be fairly nimble and flexible in how it looks at risk.”Write to Richard Vanderford at Richard.Vanderford@wsj.com

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