Soft Market, Hard Choices: The State of Cyber Insurance>
Info Security Magazine – Stephen Pritchard
High-profile cyber-attacks in 2025 have underscored the significant risks organizations face, particularly highlighted by the costly incidents involving Jaguar Land Rover and Marks & Spencer
While the cyber insurance market has softened, making premiums lower, it has also become more complex, with stricter underwriting criteria and broader exclusions
As regulatory requirements increase, organizations will need to provide substantial proof of their cybersecurity measures to qualify for coverage
Many firms are opting for higher deductibles or self-insuring to access essential services alongside potential claims
The challenge for Chief Information Security Officers (CISOs) is to balance insurance affordability with comprehensive coverage aligned with actual risk.
– High-profile attacks illustrate severe risks; Jaguar Land Rover attack cost £1.9bn and lacked insurance.
– Marks & Spencer had cyber insurance and claimed £100m after an attack.
– Cyber insurance market is described as “soft,” with premiums decreasing but being more complex due to increased exclusions and compliance expectations.
– Cyber insurance has become integral to enterprise risk management, with significant payouts in 2024.
– Regulatory changes (EU’s DORA, NIS2, UK’s Cyber Security and Resilience Bill) are increasing compliance pressures.
– Insurers require more extensive evidence of security measures, with higher rates of denied payouts.
– Organizations may choose to self-insure or accept high deductibles for access to essential incident response services.
– CISOs need to balance the search for lower premiums with securing adequate coverage aligned with actual risks.
– The growth of AI threats complicates risk assessments and coverage availability; some risks may be excluded altogether.
– Expert advice emphasizes understanding coverage needs and selecting insurers carefully to match risk profiles.
Link: https://www.infosecurity-magazine.com/news-features/the-state-of-cyber-insurance-2025/