Cyber risk rising as hackers become harder to match
Attackers adapt quickly, share tools and target the weakest links in supply chains, which makes cyber risk difficult for defenders and insurers alike. A single vulnerability in widely used software can affect thousands of organizations at once.
This systemic potential is why financial regulators, insurers and reinsurers have been working together on scenario analysis and stress testing for large cyber events. Understanding how losses could accumulate across a portfolio is essential before capacity can grow safely.
For buyers, insurers increasingly expect strong basic controls, such as multi-factor authentication, patching and backups, as a condition of cover. Better security hygiene lowers premiums and helps keep the cyber insurance market sustainable.