2026-09-03 · Source: Reinsurance News
Summary in 3 Points • Swiss Re reports AI is reshaping cyber insurance by intensifying existing risks • Global cyber insurance premiums are projected to reach USD 17.1 billion by 2027 • North America is expected to dominate the market with two-thirds of global premiums --- Swiss Re's latest analysis highlights the shifting market of the cyber insurance market, driven by factors such as AI, ransomware, and geopolitical tensions. The company notes that AI can enhance operations and resilience but may also increase certain cyber risks. Existing policies might already cover AI-related incidents, but clarity is needed as these incidents become more common. Despite a challenging risk environment, global cyber insurance premiums are expected to grow steadily, reaching USD 17.1 billion by 2027. North America is projected to remain the largest market, while Europe and Asia-Pacific continue to expand their shares. Swiss Re identifies micro-SMEs and SMEs as key areas for future growth due to low current penetration rates.
The London insurance market could see opportunities in expanding cyber insurance offerings, particularly for smaller businesses with low penetration rates. As AI reshapes risk profiles, underwriters may need to revisit policy wordings to ensure coverage aligns with evolving exposures. Pricing strategies could be influenced by global trends, such as the stabilisation of rates in the US and competitive pressures in Europe. The market may also explore partnerships and investments to tap into growth in regions like Europe and Asia-Pacific.