Cyber risk is no longer a technical problem, it’s a board-level conversation. Yet, even as ransomware attacks dominate headlines and the costs of breaches climb, the global cyber insurance market is still maturing, uneven in its reach, and sometimes misunderstood in its value.

A Market Growing Up Quickly

Cyber insurance is now estimated to be a $17 billion global industry and projected to nearly double to $40 billion by 2030. But the next phase of growth won’t come from the Fortune 500. Large corporations already understand their exposure and have the internal expertise to evaluate and transfer risk. The untapped market lies with the lower end of the middle market and small enterprises (SMEs), organizations that face the same cyber threats but often lack the resources, knowledge or guidance to act.

In many regions, particularly across Europe and emerging markets, the value proposition of cyber insurance still isn’t fully understood. Brokers play an essential role in education, helping clients see that cyber risk is not just an IT issue, but a financial, operational, and reputational one. Yet, outreach remains fragmented. The conversation about cyber risk simply hasn’t reached every corner of the business world.

Why Companies Still Hesitate

Despite growing awareness, some companies remain hesitant to purchase cyber coverage. The reasons are multi-layered:

• Education gaps: Many organizations still assume traditional property or general liability policies cover digital risks. They rarely do.
• Cost pressures: Premiums rose sharply during the ransomware surge of recent years, leading some firms, particularly in the mid-market, to invest instead in strengthening their cybersecurity posture rather than transferring the risk.
• Perceived complexity: Cyber policies can be intricate, with evolving terms, technical questionnaires, and exclusions that may intimidate first-time buyers.

But the reality is this: while the cost of coverage may have climbed, the cost of a breach has escalated even faster. The financial and reputational damage from an unmitigated ransomware event can be devastating, especially for smaller organizations.

The Evolving Relationship Between Risk and Security

One of the most striking changes in the past decade has been the growing collaboration between the Chief Information Security Officer (CISO) and the risk manager.

A decade ago, cyber insurance decisions lived squarely in the risk management office. Today, underwriters expect to hear from the CISO, the person who understands the organization’s actual security posture, from multi-factor authentication to network segmentation. This partnership is not just procedural; it reflects a deeper shift. Risk transfer and risk mitigation are now inseparable.

In fact, many insurers now embed value-added services into their policies, from tabletop exercises to proactive vulnerability assessments. These offerings help clients strengthen their defenses and understand where their real weaknesses lie before an attack happens.

Innovation and the Rise of InsurTech

The industry itself is innovating rapidly. A new generation of InsurTech carriers has emerged, companies that lead with technology first and insurance second. These firms leverage continuous monitoring, external scans and data analytics to assess cyber risk dynamically, not just at renewal time.

Traditional carriers are following suit, expanding their questionnaires and deepening their pre-underwriting technical skills and diligence. What was once a one-page application has evolved into a comprehensive risk assessment with hundreds of technical questions, a process that, while more demanding, creates better alignment between risk reality and risk pricing.

Myth vs. Reality: The Truth About Exclusions

Much has been made of exclusions and disputes — especially around the classification of cyberattacks as “acts of war.” While those headlines draw attention, they don’t tell the full story. In practice, claims are paid every day. The majority of insurers operate with fairness and diligence, recognizing that the sustainability of the market depends on trust.

Most coverage disputes arise not from bad faith but from misunderstandings, such as using non-panel vendors or failing to disclose material information during underwriting. The key to avoiding these pitfalls is education and communication: knowing how the policy works before it’s needed.

A Maturing Industry, A Shared Responsibility

Cyber insurance is no longer in its infancy, but it’s still a teenager. Two decades in, the industry continues to evolve, finding the right balance between risk transfer, risk management, and risk understanding.

The next wave of progress will depend on collaboration:

• Between insurers and brokers, to demystify coverage and reach underserved markets.
• Between CISOs and risk managers, to align security investment with financial protection.
• And between policyholders and insurers, to create a transparent, data-driven partnership against a common threat.

Cyber insurance is not a substitute for good security — it’s an amplifier of it. The organizations that recognize this synergy will not only be better prepared to withstand the next wave of attacks, but will also emerge stronger, smarter, and more resilient.