2026-10-21 · Source: Carrier Management
Summary in 3 Points • Cyber claims at Travelers account for about 50% of total claims, with a 57% increase in frequency from 2025 to 2026. • AI is being used by cybercriminals to enhance their tactics, making impersonation more convincing and sophisticated. • Risk mitigation may require low-tech solutions to combat evolving cyber threats, similar to past social engineering efforts. --- Executives at the NetDiligence Cyber Risk Summit highlighted a shift in cyber claims, with operational disruptions and sophisticated fraud schemes now driving losses. Travelers reported that these claims account for about 50% of their total cyber claims, with a notable 57% increase in frequency from the first half of 2025 to 2026, alongside a 30% rise in claim severity since 2023. The panel discussed the dual role of AI in the cyber landscape, aiding both businesses and cybercriminals. AI enhances the capabilities of threat actors, making impersonation more convincing and allowing for more sophisticated fraud schemes. Experts suggested that the insurance industry may need to adopt low-tech verification processes to combat these evolving threats, similar to strategies used against social engineering in the past. The rise in sophisticated cyber claims, particularly in the context of AI-enhanced fraud, poses challenges for insurers managing cyber risk.
The rise in sophisticated cyber claims, particularly in the context of AI-enhanced fraud, poses challenges for insurers managing cyber risk.