2026-11-10 · Source: Insurance Business Canada
Summary in 3 Points • Cyber insurance premiums are dropping despite rising risks from AI-driven attacks, according to Neal Jardine of BOXX Insurance Canada. • Criminal groups now operate like corporations, using AI to enhance their cybercrime tactics and efficiency. • Small businesses are particularly vulnerable to cyberattacks, with significant cumulative economic impacts when targeted. --- Neal Jardine, COO of BOXX Insurance Canada, highlighted a concerning trend where cyber insurance premiums are decreasing even as the risks associated with AI-driven cyberattacks are escalating. He noted that the market's capacity and available reinsurance are influencing premium levels, urging brokers to focus on the value of coverage rather than just pricing. The sophistication of cybercriminals has increased, with organized groups leveraging AI to streamline their operations and exploit vulnerabilities more effectively. Jardine pointed out that small and mid-sized businesses are especially at risk due to their reliance on a limited number of technology providers. This interconnectedness means that an attack on a supplier can have widespread repercussions, leading to significant business interruption claims. Brokers are encouraged to assess their clients' dependencies on technology and the potential impacts of outages, as the cumulative effect of cyberattacks on small businesses can be substantial for the economy. The disconnect between falling cyber premiums and rising AI-driven risks suggests a need for brokers to reassess coverage value, particularly in the context of contingent business interruption.
The disconnect between falling cyber premiums and rising AI-driven risks suggests a need for brokers to reassess coverage value, particularly in the context of contingent business interruption.