2026-10-20 · Source: Insurance Journal
Summary in 3 Points • Cyber claims at Travelers account for about 50% of their total cyber claims, driven by financial fraud and BEC. • Travelers reported a 57% increase in the frequency of cyber claims from the first half of 2025 to 2026. • AI is being used by cybercriminals to enhance their tactics, making impersonation and fraud more convincing. --- Executives at the NetDiligence Cyber Risk Summit highlighted a shift in cyber claims, with operational disruptions and sophisticated fraud schemes now dominating. Travelers reported that about 50% of their cyber claims stem from financial fraud and business email compromise (BEC), with a 57% increase in claim frequency from the first half of 2025 to 2026. The severity of claims has also risen by 30% since 2023, indicating a worrying trend in the evolving cyber threat landscape. The rise of artificial intelligence is complicating matters, as it is being leveraged by both businesses for defence and cybercriminals for enhanced attacks. Experts noted that AI has accelerated the capabilities of threat actors, making impersonation more convincing and enabling them to execute complex fraud schemes. The industry may need to adopt low-tech verification processes to combat these new tactics effectively, similar to past efforts against social engineering. The rise in cyber claims, particularly from financial fraud and BEC, poses challenges for insurers in the London Market, especially in the context of evolving cyber threats and operational risks.
The rise in cyber claims, particularly from financial fraud and BEC, poses challenges for insurers in the London Market, especially in the context of evolving cyber threats and operational risks.