2026-09-02 · Source: Risk & Insurance Magazine
Summary in 3 Points • Global cyber insurance premiums are projected to reach $16.4 billion by 2026, according to Swiss Re • AI is amplifying existing cyber risks, affecting vulnerability discovery and attack automation • Cyber insurance penetration is low among SMEs, with significant growth potential identified --- Swiss Re's latest report projects that global cyber insurance premiums will reach $16.4 billion by 2026, growing at a steady 5% annually since 2022. The report highlights that AI is not creating new categories of loss but is amplifying existing cyber risks, such as vulnerability discovery and attack automation. Despite the growing threat landscape, many AI-driven incidents may already be covered under existing policy definitions. The report also notes a substantial protection gap, particularly among micro-SMEs and SMEs, which have low insurance penetration but significant growth potential. Large corporates, while having higher penetration, face challenges with limit adequacy as AI adoption accelerates.
The London Market could see opportunities in expanding cyber insurance offerings, particularly for SMEs where penetration remains low. Underwriters may need to reassess policy wordings to ensure AI-related incidents are adequately covered. As AI amplifies existing cyber risks, there may be a need for increased reinsurance capacity to manage potential volatility. The market may also experience pricing pressures as competition intensifies, especially in Europe, requiring disciplined underwriting to maintain profitability.