The cyber insurance market is seeing some of its lowest premiums in years, but that doesn’t mean the risks are getting any easier to manage. Industry leaders warn this drop in prices comes at a time when cyber threats, especially those powered by artificial intelligence (AI), are growing faster than security measures can keep up.
Maria Long, chief underwriting officer at Resilience, explains that while buyers benefit from better pricing and broader coverage, the risk itself is becoming tougher. “Premiums are falling, but not because the threat landscape is safer. There’s more capacity and competition in the market, but defenses aren’t improving fast enough to counter AI-driven attacks,” she said.
From 2020 to 2022, cyber insurers tightened rules to fight rising ransomware and email scams. Clients had to use multi-factor authentication, encryption, endpoint protection, and solid incident plans. These rules helped companies strengthen their defenses and led to fewer losses for insurers. But now, attackers are using AI to create deepfake videos and mimic voices, making phishing and social engineering attacks even more convincing and harder to stop. Resilience’s own data shows these social engineering attacks made up over half of all cyber claims and losses in the first half of 2025.
Manufacturing companies face particular risks. Many run on outdated technology that wasn’t built with cybersecurity in mind. Since they can’t just replace systems without stopping production, they are prime targets for AI-enhanced cyberattacks. Long adds that as IT and operational tech connect more, cyber incidents in manufacturing can cause real physical damage, not just data theft or downtime.
Long warns against loosening underwriting standards in this soft market, where insurers might be tempted to accept more risks to win clients. She stresses the need for clear guidelines and a strong focus on profitable, quality business rather than just chasing volume.
Brokers play a big role, too. They should guide clients toward smart decisions about which risks to keep, mitigate, or insure against—not just finding the cheapest policy. Resilience, which works as both an underwriter and insurance broker, also offers security tools to help clients improve their cyber defenses. Long believes this kind of support is key to lowering risk, not just selling coverage.
In the end, Long says the market must keep a steady hand. Easy money and abundant capacity won’t last if underwriting and security don’t catch up to new AI threats. Without that, losses will rise, and the market is bound to harden once again.