Only 47% of eligible clients hold cyber cover

Arctic Wolf sees cyber insurers facing higher claims in 2025.

Cyber insurers are bracing for higher claims and rising premiums in 2025, according to Arctic Wolf’s latest Cyber Insurance Outlook. 

Based on a survey of 400 insurance professionals across North America, Europe, and Asia Pacific, the report highlights growing cyber risks and shifts in insurance market behaviour.

Currently, only 47% of eligible clients globally hold cyber insurance. DACH countries lead with 54% adoption, whilst North America lags at 45%, despite being a mature market. Regulatory pressures in Europe are driving faster adoption.

Claim activity remains relatively low, with only 12% of policyholders filing in the past year. 

However, 70% of brokers and carriers expect the volume of claims to rise. 

Ransomware continues to dominate, making up 18% of reported claims, with average demands ranging from $300,000 to $5.5m.

The average cyber insurance claim is valued at $205,000, mostly amongst SMEs. 

Organisations using MDR services had significantly lower median claims—$75,000 compared to $3m for endpoint-only users.

Claim denials remain a concern. The top reason (25%) is that incidents fall outside policy terms. 

Meanwhile, 66% of successful claims led to higher premiums and 56% triggered stricter renewals.

Premiums are on the rise. 53% of insurers reported increases in the past year, with 72% expecting further hikes. 

Common underwriting requirements now include email security (63%), network security (57%), and data backups (52%).

AI is emerging as both a risk and a defensive tool. Whilst it enables more sophisticated attacks, it’s also driving investment in cybersecurity. Insurers are now assessing AI governance in underwriting decisions.