Kathmandu. In 2025, cyber insurance companies around the world are preparing for more claims and rising premiums.
Arctic Wolf’s latest cyber insurance outlook, based on a survey of 400 insurance professionals in North America, Europe and the Asia Pacific, highlights rising cyber risks and changes in insurance market behavior. Currently, only 47 percent of globally eligible customers have cyber insurance.
DSCH countries are leading in cyber insurance adoption by 54 percent. While North America is a mature market, it lags behind by 45 percent. In Europe, regulatory pressure is working quickly.
According to the outlook, claim activity is relatively low. Last year, only 12 per cent of the insured had filed insurance claims. However, 70 per cent of brokers and carriers expect claims to increase.
Ransomware continues to dominate. Accounting for 18 percent of registered claims, the average demand ranges from $300,000 to $55,000.
Most small and medium-sized enterprises (SMEs) have an average cyber insurance claim value of $205,000. The average cost of claims was significantly lower for organizations using MDR services of $75,000, compared to $3 million for endpoint users alone.
The rejection of insurance claims is a matter of concern, the outlook said. “The main reason (25 per cent) is that the incidents fall outside the terms of the policy,” the outlook said.
Meanwhile, 66 per cent of successful claims have increased premiums and 56 per cent tightened renewals. The premium is increasing. 53 percent of insurance companies increased their premiums last year. While 72 percent of the insurers expect the premium to increase further.
Common underwriting requirements now include e-mail security (63 per cent), network security (57 per cent) and data backup (52 per cent). AI is emerging as both a risk and a defensive tool. It is also increasing investment in cyber security while enabling more sophisticated attacks.
Insurance companies are now evaluating AI good governance in underwriting decisions.
