A comprehensive industry survey conducted by GlobalData in the first quarter of 2026 has revealed that nearly one-third of insurers find the assessment of cyber risks to be their primary obstacle in providing coverage. The poll, which gathered responses from 109 industry participants across Verdict Media platforms, highlights the growing complexity of the digital threat landscape and the limitations of traditional underwriting models.
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The Problem with Historical Data
According to the findings, 32.1% of respondents cited risk assessment as the foremost challenge to offering cyber insurance. Unlike conventional insurance lines—such as fire, motor, or marine insurance—where underwriters can utilise decades of historical data to project future loss probabilities, cyber insurance lacks a stable actuarial foundation.
Beatriz Benito, lead insurance analyst at GlobalData, explained that the fluid nature of digital threats renders comprehensive historical data largely obsolete. This lack of retrospective reliability forces insurers to operate in an environment of high uncertainty, complicating the task of determining accurate premium prices and coverage limits.
Impact of Artificial Intelligence and Systemic Exposure
The survey also identified the management of shared or systemic risks as a top concern, with 20.2% of respondents highlighting this as a significant difficulty. In the event of a major breach affecting a shared service provider or a widely used software platform, insurers face the prospect of simultaneous claims from multiple policyholders, leading to catastrophic financial loss.
The proliferation of Artificial Intelligence (AI) in criminal activities has further exacerbated these issues. Benito noted that the rapid evolution of AI-driven attacks adds a layer of complexity that traditional policies are not designed to handle. Consequently, a growing number of insurers have begun incorporating specific AI exclusions into their contracts to mitigate unforeseen liabilities.
Key Challenges to Offering Cyber Insurance (Q1 2026)
| Identified Challenge | Percentage of Respondents |
| Difficulty in Assessing Risks | 32.1% |
| Managing Exposure to Shared Risks | 20.2% |
| Pricing Volatility and Loss Ratios | ~18.5% |
| Regulatory and Operational Barriers | ~29.2% |
Note: Data derived from a GlobalData poll of 109 respondents.
Market Capacity and Adaptation
The study suggests that the ability of the insurance market to expand its cyber capacity depends on its adaptability. High-profile, large-scale attacks continue to raise questions regarding how to price cover correctly without risking solvency.
Benito observed that while larger insurance providers exhibit varying degrees of appetite for cyber risk, smaller firms often lack the technical resources or capital depth required to enter the market. As the threat landscape continues to transition toward more automated and sophisticated AI-led incursions, the industry must develop more dynamic risk-modelling techniques to ensure long-term viability.