AI threats rise as cyber insurance prices fall
Cyber insurance premiums are falling even as threats grow more dangerous. Maria Long from Resilience said excess market capacity has driven down prices, while hackers use artificial intelligence to launch more effective attacks. Companies paid less for coverage in 2025 despite security controls failing to keep pace with the speed of new risks.
Social engineering caused 57 percent of cyber claims in the first half of this year. Criminals deploy AI-generated audio and video to trick employees and bypass technical defenses. Manufacturing firms face particular danger because legacy systems lack modern security features and cannot be replaced without stopping production lines.
Long warned insurers against relaxing standards to gain customers. She said brokers must help clients balance risk reduction with insurance purchases rather than simply seeking the cheapest policies. The market could harden again if underwriters abandon discipline and losses mount from AI-powered attacks that current defenses cannot stop.
