Cyber insurance policyholders facing heavier scrutiny in underwriting, claims
Cyber insurance policyholders facing heavier scrutiny in underwriting, claims
Publish Date: 2026-06-08 11:31:00
Source Domain: www.cybersecuritydive.com
Enterprises holding cyber insurance policies are undergoing more scrutiny in their claims as rates decline and insurers scramble to remain profitable.
The stakes are high for both sides. Insurance companies around the globe increasingly fear their business is overly dependent on large U.S. policyholders, which make up nearly two-thirds of their global market share. They worry that one large supply chain event or outage could escalate and ultimately wipe out the cyber insurance industry as a whole.
These market pressures have led to a shift in the cyber insurance business model, where cyber insurers are developing sophisticated risk models to prepare for large-scale attacks that could disrupt a wave of policyholders at the same time.
Meanwhile, insurers are also pressuring policyholders to make sure they button up governance and security controls and have mitigations in place for any risk incurred by their third-party technology partners.
“Insurers today generally have a better understanding of cyber risk quantification and are placing greater emphasis on security controls, technology dependencies and exposure to systemic cyber events,” said Anjali Nagrani, principal cyber cat risk product adviser at CyberCube, a firm specializing in cyber risk modeling. “Organizations with weak cyber hygiene may face more scrutiny and coverage restrictions, whereas well-prepared companies can access broader coverage and improved terms.”
“Insurers today generally have a better understanding of cyber risk quantification and are placing greater emphasis on security controls, technology dependencies and exposure to systemic cyber events.”
Anjali Nagrani
Principal cyber cat risk product adviser at CyberCube
Ransomware and other cyber intrusions can add up to millions of dollars in recovery costs or more if the attack forces a company to halt order-taking, manufacturing or shipping.
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