Rising Cyber Threats Push Insurers to Redefine Digital Risk Policies for Businesses
Cyber insurance providers are revising their policies as businesses face more sophisticated online threats, including ransomware attacks targeting financial institutions, hospitals, and major retail chains.
Insurers are tightening underwriting standards, requiring stronger cybersecurity protocols before issuing coverage. Many companies now demand multi-factor authentication, encrypted backups, and regular security audits as mandatory prerequisites.
Cyber insurance claims rose by 18% in 2024, with ransomware accounting for nearly half. Experts warn that artificial intelligence is fueling more advanced cyber attacks, forcing insurers to update their risk models.
Despite rising premiums, demand continues to grow as businesses recognize cyber insurance as an essential layer of protection. Analysts predict cyber insurance will become one of the fastest-growing segments of the industry.