Aon urges insurers to consider client readiness in cyber cover

It found that cyber events with PR fallout cut value by 27%.

Companies hit by cyber events involving reputational fallout saw an average 27% drop in shareholder value. But reputation-related losses remain outside the scope of most insurance policies.

Aon plc’s 2025 Cyber Risk Report reveals a growing gap in insurance coverage as cyber incidents increasingly lead to reputational damage that remains largely uninsurable. 

The report shows that companies hit by cyber events involving reputational fallout saw an average 27% drop in shareholder value.

Of the 1,414 global cyber incidents analyzed, 56 were classified as reputation risk events—incidents that attracted major media attention and triggered share price declines. 

The report underscores the importance of aligning cybersecurity and insurance strategies. Aon’s analysis, supported by its Cyber Quotient Evaluation platform, highlights the need for insurers and clients to better assess insurability and refine underwriting practices to address emerging risks.

Malware and ransomware were identified as the most common causes of reputational damage, responsible for 60% of reputation-related events. 

These accounted for 45% of all incidents reviewed.

Aon said insurers should factor in these evolving risks and client response capabilities—such as preparedness, speed of action, and communication—when evaluating coverage and pricing.