Editor's Note
As of February 3, 2026, the cyber insurance market is characterized by a significant softening in reinsurance rates and a strategic shift toward AI-integrated risk management.
While primary pricing remains largely flat for most sectors, reinsurance risk-adjusted rates have plummeted by 32% due to overcapacity.
Underwriters are now aggressively launching specialized solutions for private equity and financial institutions, while simultaneously bracing for a "second wave" of liability claims involving AI-driven deepfakes and non-breach privacy litigation.
🗓️ Upcoming Conferences & Events
Cyber Risk & Innovation - Europe
Europe’s Cyber Leaders, Insurers, Brokers, MGAs, and Security Experts Unite to Tackle a Fast-Evolving Threat Landscape - Register Here
Date: February 3 - 4, 2026
Location: The Minister Building, London
Netdiligence Cyber Risk Summit - Miami
Join us at the fifth NetDiligence® Cyber Risk Summit winter meeting in Miami Beach, Florida!
Date: February 9 - 11, 2026
Location: Eden Roc Hotel, Miami Florida
📈 Market Trends & Pricing
Gallagher Re cyber index shows 32% fall at 1/1 in XoL risk-adjusted rates: An oversupply of capacity and improved structural terms drove a sharp decline in pricing for cyber aggregate excess of loss reinsurance protections at the January 2026 renewals, writes Gallagher Re.
Cyber insurance prices set to hold steady through mid-2026: Primary cyber insurance premiums are expected to remain flat through the first half of 2026 as carrier competition stabilizes the market following three years of softening conditions.
Financial services trends spotlight: Cyber insurance adoption grows: Cyber insurance reach has hit a record high in the middle market, with 82% of firms now carrying coverage as executive boards prioritize business continuity risks.
📰 Industry News & Product Launches
Coalition to help private equity firms manage cyber risk with new active insurance solution: Coalition, Inc. has launched a new specialized practice and bespoke insurance product have been launched to provide private equity firms with portfolio-wide visibility and coverage from deal screening through exit.
CYGNVS launches AI Model for Cyber Readiness and Response: In collaboration with Marsh Risk, a new AI-driven "command center" has been released to provide clients with incident-specific guidance based on data from tens of thousands of real-world outages.
Brit launches FI Cyber Max consortium for financial institutions: A new integrated consortium offers up to $20m in lead capacity, blending cyber, professional indemnity, and D&O coverage to reduce friction in fragmented programs.
Data Center Boom Offers Organic Growth Opportunities for Brokers Like Aon, Marsh: The global surge in AI-driven data center construction is creating massive new opportunities for brokers to innovate around alternative risk capital and infrastructure pooling.
🏢 Claims, Reports & Regulatory Shifts
Allianz Risk Barometer 2026: Cyber and AI as major business risks: Cyber incidents remain the top global business concern for the fifth consecutive year, with AI-related risks making the largest jump in ranking to the number two spot, writes Allianz.
Cyber Risk Enters 2026 as a Board-Level Priority: Aon’s latest research highlights that while ransomware frequency dropped late last year, the severity of claims surged as average payment amounts rose by 95%.
7 Predictions For Cyber Risk And Insurance In 2026: Legal experts project a rise in non-breach privacy litigation under the California Invasion of Privacy Act (CIPA) as courts struggle with the lack of uniformity in AI-related case law.
Did You Know? The first official cyber insurance policy was written in the spring of 1997 and it was underwritten by American International Group (AIG).
The product was originally called the "Internet Security Liability" (ISL) policy. It was born out of a specific need for the world’s first internet-only bank, Security First Network Bank, whose regulators were concerned about the lack of protection against hacking and data theft.
Till next time,