Cyber insurance expands amid costly attacks

Small- and medium-size companies are more vulnerable to online attacks, including business email compromise, which ranked as the second-costliest cybercrime with $3 billion in reported U.S. losses in 2025. Those findings are among those detailed in a new National Association of Insurance Commissioners study, Report on the Cybersecurity Insurance Market: 2025 Reporting Year. The report, released Oct. 21, found U.S. cyber insurance policies were among the fastest-growing insurance segments, nearly tripling since 2020. Yet much of the economic damage from cyber incidents remains uninsured, widening the global protection gap as threats grow more sophisticated. “Cyberthreats affect businesses of every size and, by extension, the consumers whose personal information they hold. The steady growth of this market shows more organizations are turning to insurance to help manage that risk,” said Michael Yaworsky, Florida insurance commissioner. He also chairs NAIC’s Innovation, Cybersecurity and Technology Committee. Yaworsky predicted the findings will provide state insurance regulators with “a clear, data-driven view of how the market is responding as threats evolve, helping us ensure coverage remains available, financially sound and protective of policyholders and consumers alike.” Cyber risks include increasingly vulnerable supply chains, expanding e-commerce and the growing sophistication of online criminals. 2026-report-cybersecurity-insurance-market “Global economic losses from cyber incidents are estimated at $1 trillion to more than $10 trillion annually, with one widely cited projection reaching $12.2 trillion by 2031. Yet, only about 1% of global economic cyber losses are covered by insurance, underscoring the protection gap that conditions market demand,” the report stated. Business email compromise drives lossesBusiness email compromise generated 24,768 complaints and…

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