Triple — I: Cybercrime Losses Rise as Businesses Face Growing Insurance Protection Gap

For best results when printing this announcement, please click on link below: Triple-I: Cybercrime Losses Rise as Businesses Face Growing Insurance Protection Gap New Analysis Examines AI-Driven Threats and Cyber Resilience Cybercrime is becoming more costly and complex, exposing businesses to growing financial risks even as the commercial cyber insurance market remains strong, according to a new Insurance Information Institute (Triple-I) members-only issues brief, Commercial Cyber Insurance: State of the Risk ( ) The brief examines rising claim severity, AI-powered phishing and social engineering tactics, and increasing digital supply chain exposure, highlighting the importance of helping businesses better understand and manage evolving cyber risks.

S. cyber-related losses reached nearly $21 billion in 2025, up from approximately $16 billion in 2024, according to the FBI's Internet Crime Report. More than 1 million incidents were reported, compared with 859,532 the previous year. “Cyber threats are evolving faster than many businesses can adapt, creating significant financial and operational challenges,” said Sean Kevelighan, CEO of Triple-I.

“Cyber insurance is an important part of a comprehensive risk management strategy, particularly for small and midsize businesses with fewer resources to recover from an attack. However, insurance alone is not enough. ” Cyber insurance adoption among small and mid-sized businesses remains relatively low, with market penetration estimated at just 10% to 20%, according to Swiss Re. These businesses often lack dedicated cybersecurity budgets and advanced defenses, increasing their vulnerability to potentially costly attacks.

S. 4 million in 2025, even as claim frequency declined 34% for that segment, according to Chubb. Growing ransomware exposure: Ransomware was involved in 48% of data breaches examined in Verizon's 2026 Data Breach Investigations Report. However, 69% of victims declined to pay ransom demands, due in part to better data backups and cybersecurity planning.

Supply-chain vulnerabilities: Approximately 15% of data breaches in 2026 originated from supply-chain compromises, with an average cost of approximately $5 million, according to IBM. Increasing AI-related threats: AI-powered phishing, impersonation and social engineering schemes are making cyberattacks more sophisticated and accessible. The FBI reported nearly $893 million in losses associated with AI-driven incidents in 2025. Steady but limited market growth: Global cyber insurance premiums have grown at an annual rate of approximately 5% since 2022, according to Swiss Re.

1 billion in 2027, with North America accounting for roughly two-thirds of the market. Cyber insurance rates have declined for four consecutive years, falling approximately 5% year-to-date in 2026, compared with a 13% decline in 2025. Yet adoption remains low among small and mid-sized businesses, suggesting affordability alone may not be the primary barrier to coverage. Misunderstandings about cyber insurance options and benefits may also contribute to the gap.

Artificial Intelligence Presents Risks and Opportunities While AI is enabling cybercriminals to launch increasingly sophisticated attacks, it is also helping businesses and insurers strengthen defenses, identify vulnerabilities and respond more quickly to cyber incidents. 93 million. As AI adoption accelerates, effective oversight, employee training and data security will become increasingly important to managing emerging risks and supporting responsible deployment.

Building Cyber Resilience A recent Triple-I/Munich Re US RiskScan study found cyber incidents and AI ranked among the leading risk concerns across five key industry segments, including consumers and small business owners. The findings reinforce the importance of translating risk awareness into effective protection. “Businesses need to understand not only the financial consequences of a cyberattack but also the proactive steps they can take to reduce their exposure,” Kevelighan said.

” Triple-I’s Issues Brief also examined the evolving regulatory landscape, including cyber incident reporting requirements and state-level initiatives addressing the use of artificial intelligence in insurance. About the Insurance Information Institute (Triple-I) Since 1960, the Insurance Information Institute (Triple-I(®)) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers, and the media. S. property/casualty premiums written.

Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers — serving regional, national and global markets. Triple-I is a registered trademark of the Insurance Information Institute.