The CyberCube Cyber Predictions 2025 Webinar provided an in-depth exploration of the evolving cyber risk landscape and its implications for the insurance and cybersecurity industries. Hosted by Yvette Essen, Head of Communications and Market Engagement at CyberCube, the event featured key insights from CyberCube's annual Cyber Predictions Report, which highlights standout trends for the year ahead. The discussion focused on themes such as the increasing role of artificial intelligence (AI) in cyber threats, the evolution of cyber underwriting, and the crucial role of brokers in driving insurance growth among small and medium-sized enterprises (SMEs).
The expert panel included Steve Ridley, cyber insurance expert and consultant; Dan Palardy, Cyber Actuary at Cowbell Cyber; and Scott Stransky, Managing Director at Marsh McLennan’s Cyber Risk Intelligence Center. Together, they explored the current state of the cyber insurance market, predicting key challenges and opportunities for 2025. One major topic of discussion was the continuing evolution of geopolitical risks and their potential to shape the cyber threat landscape, particularly as global tensions and technological advancements create new vulnerabilities.
Artificial intelligence (AI) was identified as both a threat and an opportunity. While AI is expected to enhance cybercriminals’ ability to launch sophisticated attacks, including deepfakes and AI-driven phishing campaigns, it also offers promising applications in threat detection, risk modeling, and claims processing. The panel highlighted the need for insurers and brokers to adopt advanced AI tools to better assess and manage risks, particularly in the SME market, which remains significantly underinsured.
Another central theme was the role of brokers in unlocking SME market growth. Panelists emphasized that brokers must act not only as sellers of cyber insurance but also as educators, helping smaller businesses understand their exposure to cyber risks. By integrating cybersecurity improvements into the insurance placement process, brokers can enhance both the affordability and value of cyber insurance for SMEs.
The conversation also touched on the shift toward a more data- and science-driven approach to underwriting. Panelists discussed how advancements in technology and analytics enable insurers to better correlate data points with loss trends, improving risk assessment and pricing accuracy. However, they agreed that a balance between the "art" and "science" of underwriting will remain crucial, particularly for complex risks where human judgment is still essential.
Finally, the panelists acknowledged the current soft market conditions in cyber insurance, characterized by declining premiums and increased capacity. While these conditions favor buyers, they also present challenges for insurers striving to achieve growth and profitability. The panel predicted that significant events or shifts in attritional loss patterns could trigger a market correction, potentially leading to a return to a harder market in the coming years.
