In this digitalized global economy, insurers play a crucial role in safeguarding businesses against cyber risks. Despite the extensive dependence of today's value chains on digital assets, the level of protection appears insufficient. Thomas Blunck, CEO Reinsurance at Munich Re reveals: “There is still too high a proportion of uninsured cyber risks. According to our current global cyber survey, 87% of managers surveyed state that their company is not adequately protected against cyber risks.  Risk awareness and demand will continue to rise, also against the backdrop of a rapidly growing threat from aggressive cyber criminals, new technologies and dependencies, as well as geopolitical crises.”  Hence, there is a pressing need to enhance cyber insurance penetration and associated resilience.

Recent months have witnessed a surge in cyber-attacks, particularly ransomware incidents. Other costly attack vectors include business email compromise (BEC) and supply chain attacks. Despite efforts to combat cybercrime, compiling comprehensive statistics remains challenging, with a significant portion of cyber incidents likely going unreported. Forecasts suggest that the global cost of cybercrime will skyrocket to US$13.8 trillion by 2028, underscoring the critical role of insurance in the cyber risk management process.

The advent of generative artificial intelligence, epitomized by ChatGPT and similar large language models, heralds a new era with profound implications for economies, societies, and geopolitics. While AI promises transformative advancements, its long-term impact remains uncertain. AI is expected to revolutionize cyberattacks, making them increasingly automated, personalized, and widespread across languages. However, AI also holds promise in augmenting cyber defence efforts, strengthening detection, response capabilities, and attribution of cyber-attacks.

In the insurance sector, AI has already transformed  and improved the efficiency of risk assessment, coverage creation, claims processing, and other operational aspects. Despite these advancements, AI cannot replace the expertise required for comprehensive understanding and underwriting of cyber risks. Furthermore, the rise in nation-state-sponsored cyber activities poses a significant threat to global cybersecurity, with potential repercussions extending to disinformation campaigns aimed at undermining democracy. Given the escalating cyber threats, cybersecurity measures and insurance solutions must evolve to effectively mitigate risks and protect businesses in the digital age.