As cyber threats continue to rise, the demand for cyber insurance is also increasing, but this growth is not consistent across the globe. On June 6, 2025, Alessandro Lezzi, the group head of cyber at Beazley, shared insights on the current state of the cyber insurance market, highlighting the disparities in coverage among different regions and business sizes.
In North America and parts of Europe, large companies are actively seeking cyber insurance, but small and medium-sized enterprises (SMEs) are lagging. Lezzi pointed out that while awareness of cyber risks is growing, many SMEs still underestimate their vulnerability. This presents a significant opportunity for insurance brokers to educate these businesses about the importance of coverage and to tailor policies that meet their specific needs.
The gap in cyber protection is particularly evident in Asia and Latin America, where many companies remain underinsured. However, Lezzi is optimistic about future growth in these regions as larger firms begin to engage with cyber insurance products and better understand their risks.
In the United States, the cyber insurance market has matured, with larger enterprises and middle-market firms showing higher penetration rates. Still, SMEs are not fully embracing this coverage. Lezzi emphasized that many small business owners do not believe they are targets for cyber attacks, making education crucial in bridging this gap.
Recent high-profile cyber incidents have heightened awareness and urgency for businesses to secure coverage. Lezzi noted that past surges in ransomware attacks have demonstrated how real-world events can drive demand for insurance. Beazley is responding to this need by offering customized solutions that assess both internal security measures and external risks, particularly those related to supply chains.
Lezzi identified three major concerns shaping the cyber insurance landscape: the rise of artificial intelligence, geopolitical tensions, and systemic cyber risks. AI is increasingly being used by cybercriminals, lowering the barriers for potential attackers. Additionally, geopolitical issues, such as the conflict between Russia and Ukraine, have shifted the focus of cyber threats, impacting how companies assess their vulnerabilities.
Looking ahead, Lezzi believes that the future of cyber insurance lies in collaboration among insurers, brokers, clients, and cybersecurity experts. It’s not just about compensating for losses but also about preparing companies to handle cyber threats and building their resilience. This holistic approach is essential for enhancing overall security in a rapidly evolving digital landscape.