AI is lowering the cost and complexity of launching cyber incidents — enabling scammers to commit breaches at unprecedented speed and amplifying the need for proper insurance.
"AI is not creating an entirely new cyber risk landscape, but it is amplifying the risks we already know," said Fabian Willi, head of cyber key accounts at Swiss Re. "AI-related cyber claims remain limited today, but clarity over how existing cyber policies respond will become increasingly important as exposures evolve."
Overall, Swiss Re estimates that global market premium will reach $16.4 billion this year. The report found that small and medium-sized enterprises (SMEs) are the cyber insurance market's greatest avenue for growth, as the majority remain significantly underinsured or completely uninsured. Swiss Re estimates that only 5% to 10% of micro-SMEs own a cyber insurance policy, and only 10% to 20% of SMEs are insured. Together, these businesses will generate nearly $5 billion in insurance premium by the end of 2026.
About half of mid-market businesses, between 40% and 50%, have a cyber insurance policy and are projected to generate just over $4 billion in 2026. Large corporations generate the greatest share of premium and policy ownership, with 60% to 70% generating $7.4 billion.
"The cyber protection gap is not only about getting more companies insured; it is increasingly about whether the protection already being bought is enough for the losses businesses actually need insurance to absorb," said Dani Tobler, head of cyber at Swiss Re.
According to Swiss Re's estimates, large U.S. corporates purchase about $120 million average limits with a focus on protection from more severe cyber events. Swiss Re experts argue that these large corporates are underinsured; within the last five years, an average of ten losses per year would have exceeded $120 million.
Cyber claims of this scale are typically a result of ransomware,
