Munich Re Acquires At-Bay: A Strategic Move in Cyber Insurance
Munich Re Group's acquisition of U.S.-based cyber insurance tech firm At-Bay for $575 million marks its largest venture into the primary cyber insurance market to date.
This strategic move, expected to close by Q1 2027, underscores Munich Re's intent to solidify its foothold in a rapidly evolving sector. The acquisition price is about double At-Bay's $278 million in gross written premiums, though it represents a reduction from the 2021 valuation of $1.35 billion during its Series D funding. This decrease in value reflects broader market trends affecting insurtech valuations in recent years.
Enhancing Munich Re's Cyber Portfolio
Following the acquisition, At-Bay will integrate into Hartford Steam Boiler (HSB), Munich Re's specialized insurance division, which has reinsured At-Bay since 2022. As a top-10 player in the U.S. cyber insurance market, At-Bay provides Munich Re with innovative capabilities that are expected to significantly enhance its cyber insurance portfolio.
A noteworthy aspect of At-Bay's offering is InsurSec, a real-time platform that evaluates and manages policyholders' cybersecurity risks throughout the policy term. This capability not only streamlines underwriting processes but also enables the company to mitigate claims, positively impacting Munich Re's approach to cyber risk management.
Focus on Small and Medium-Sized Enterprises
At-Bay primarily targets small and medium-sized enterprises (SMEs), a segment where cyber insurance adoption ranges from 10% to 20%, in contrast to 60% to 70% for larger corporations. Given that SMEs account for 43% of data breaches according to Verizon's 2025 Data Breach Investigations Report, there is a significant growth opportunity in expanding cyber risk solutions for these businesses.
| Cyber Insurance Adoption | Breaches |
|---|---|
| SMEs: 10%-20% | Represents 43% of breaches |
| Large Corps: 60%-70% | Better protected |
Market Implications and Strategic Insight
In 2025, Munich Re reported $1.7 billion in cyber insurance premiums, split evenly between primary insurance and reinsurance. This acquisition grants Munich Re access to At-Bay's precise underwriting platform, data, and operations, shifting their prior capacity partnership into a direct ownership model. Given the falling cyber reinsurance rates—Gallagher Re noted a 32% decrease in January 2026 renewals—At-Bay's real-time data provides a much-needed competitive edge.
Jeffrey O'Shaughnessy, President and CEO of HSB Group, highlighted the operational synergy from integrating At-Bay, noting how it facilitates a more unified platform that combines insurance, cybersecurity, and claims management. Rotem Iram, At-Bay's CEO, is optimistic that this enhanced partnership will amplify their ability to serve small businesses lacking robust cyber risk management solutions.
With approximately 280 employees across the U.S. and Israel, At-Bay is strategically positioned to support this expansion. The acquisition illustrates Munich Re's commitment to innovation and providing tailored solutions in the ever-evolving realm of cyber insurance, ensuring that it remains a pivotal player in managing complex cyber risks.