U.S. cybercrime losses reached nearly $21 billion in 2025, up from approximately $16 billion in 2024, according to a new Insurance Information Institute (Triple-I) issues brief, Commercial Cyber Insurance: State of the Risk.
Citing FBI data, Triple-I reported more than 1 million cyber incidents in 2025, compared with 859,532 in 2024. The report examines rising claim severity, artificial intelligence-driven threats, supply-chain vulnerabilities, and cyber insurance adoption.
Despite favorable conditions in the commercial cyber insurance market, coverage penetration among small and midsize businesses remains between 10% and 20%, according to Swiss Re.
Cyber Claims and Ransomware Trends
Triple-I identified several developments affecting cyber insurance:
Claim severity: Average cyber claim severity among large U.S. businesses more than doubled to over $4.4 million in 2025, although claim frequency declined 34%, according to Chubb.
Ransomware: Verizon’s 2026 Data Breach Investigations Report found ransomware involved in 48% of examined breaches. However, 69% of victims declined ransom payments, partly because of improved backups and cybersecurity planning.
Supply-chain breaches: IBM reported approximately 15% of data breaches in 2026 originated from supply-chain compromises, with average costs of approximately $5 million.
AI-related threats: AI-powered phishing, impersonation, and social engineering are increasing the sophistication of attacks. The FBI recorded nearly $893 million in AI-related incident losses in 2025.
Cyber Insurance Market Growth and Pricing
According to Swiss Re, global cyber insurance premiums have increased approximately 5% annually since 2022. Premiums are projected to reach $16.4 billion in 2026 and $17.1 billion in 2027. North America accounts for approximately two-thirds of the market.
Meanwhile, cyber insurance rates have declined for four consecutive years. Rates fell approximately 5% year-to-date in 2026, following a 13% decline in 2025.
Triple-I noted that low adoption among smaller businesses may reflect limited understanding of coverage options and benefits rather than affordability alone.
AI Creates Cybersecurity Challenges and Opportunities
The report also examined AI’s role in cybersecurity prevention and incident response.
According to IBM, organizations using security AI and automation experienced average breach costs of $4 million, compared with $5.93 million among organizations without these capabilities.
The $1.93 million difference highlights the findings associated with automated security systems. Triple-I also identified employee training, data security, and oversight as important considerations for AI deployment.
Cyber Resilience and Regulatory Developments
A recent Triple-I/Munich Re US RiskScan study identified cyber incidents and AI among leading concerns across five industry segments, including consumers and small business owners.
Triple-I CEO Sean Kevelighan emphasized the need to combine insurance with prevention and preparedness, particularly for smaller businesses with limited cybersecurity resources.
The brief also addressed cyber incident reporting requirements and state-level initiatives regulating AI use in insurance.
Kevelighan called for greater education and collaboration among insurers, businesses, and cybersecurity professionals to strengthen organizations’ ability to prepare for, respond to, and recover from cyberattacks.
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