Cyber risk assessment remains top underwriting barrier

About 32.1% of industry respondents cited accurate risk assessment as the biggest challenge in offering cyber cover.

Inaccurate risk assessment remains the biggest challenge for insurers offering cyber insurance, as evolving threats continue to complicate underwriting and pricing, according to GlobalData.

A GlobalData poll conducted on Verdict Media sites in Q1 2026 found that 32.1% of industry respondents cited accurate cyber risk assessment as the top barrier to offering cyber cover.

This was followed by managing exposure to shared risks, cited by 20.2% of respondents. These include situations where multiple clients are affected by the same cyberattack, potentially leading to large claims costs.

GlobalData said cyber underwriting remains difficult because insurers cannot rely on comprehensive historical data, unlike in more traditional insurance lines. Cyber risks are also constantly changing as hackers use more sophisticated techniques.

The firm also noted that AI is increasingly being used in cyberattacks, adding another layer of uncertainty. Some insurers are now adding AI-specific exclusions to policies.

Other challenges cited in the poll included a lack of historical data within cyber insurance at 11.0%, helping customers reduce cyber risk at 9.2%, the cost of premiums at 6.4%, managing claims from cyber incidents at 3.7%, and a lack of reinsurance availability at 2.8%.

GlobalData said insurers must actively monitor emerging threats and adapt their underwriting approach to improve capacity and profitability.

Beatriz Benito, lead insurance analyst at GlobalData, said smaller insurers may not yet have the ability to offer cyber insurance, whilst appetite for this risk varies among larger providers.