2026-08-03 · Source: Reinsurance News
Summary in 3 Points • Resilience's analysis shows 85.3% of losses linked to human error, not AI-specific attacks • Ransomware accounted for 73% of financial losses but only 5.8% of claims • Use of immutable backups increased to 85.2%, aiding recovery from ransomware --- Resilience, a **cyber risk solutions** company, has released its 2026 Midyear Cyber Risk Report, revealing that **artificial intelligence** is enhancing existing cyber attack methods rather than creating new autonomous threats. The report, based on insurance claims data and intelligence from Resilience's Risk Operations Center, indicates that 85.3% of incurred losses were due to human error, with phishing and social engineering as primary vectors. Notably, ransomware-related extortion was the largest contributor to financial losses, accounting for 73% of incurred losses, despite representing only 5.8% of all claims. The use of **immutable backups** has increased, potentially improving recovery capabilities and reducing ransomware-related claims. For the **London Insurance Market**, the findings show the ongoing relevance of traditional cyber risks, such as phishing and ransomware, which are prevalent in cyber insurance portfolios. With **Lloyd's** syndicates writing a significant share of global cyber premiums, the report's focus on AI-enhanced attack methods is crucial. The increase in **immutable backups** could influence underwriting strategies, as improved recovery capabilities may alter the risk landscape. As AI continues to refine attack techniques, London Market insurers must adapt their **cyber risk** models to account for these changing threats. **Underwriters** and **brokers** should consider the effects of AI-enhanced attacks on existing policies, ensuring that **phishing exercises** and verification measures are updated to reflect these developments. **Risk managers** are advised to focus on rapid threat detection and containment, as well as maintaining effective third-party risk management processes. By treating AI as part of a broader risk-first strategy, organisations can better prepare for the potential financial impacts of both current and future cyber threats.
For the London Insurance Market, the findings show the ongoing relevance of traditional cyber risks, such as phishing and ransomware, which are prevalent in cyber insurance portfolios. With Lloyd's syndicates writing a significant share of global cyber premiums, the report's focus on AI-enhanced attack methods is crucial. The increase in immutable backups could influence underwriting strategies, as improved recovery capabilities may alter the risk landscape.