Cyber insurance has entered 2025 with a rare mix of stability and uncertainty, as claims remain steady while the nature of threats grows more complex, reports Insurance Business Magazine citing Allianz Commercial’s Cyber Security Resilience Outlook.
The findings suggest that heavy investment in cyber defence, faster detection systems and incident response planning are helping large insured firms reduce the impact of major breaches.
Allianz data shows around 300 claims were reported in the first half of 2025, nearly identical to the same period a year ago.
Losses, however, are lighter this time, with the severity of claims cut by more than half and large loss cases down nearly 30 percent.
Allianz attributes the shift to stronger cyber resilience across big corporates, but the company warns that the broader digital ecosystem is not easing up.
Ransomware remains the most common threat, though attackers are increasingly targeting mid-sized businesses that lack deep protection budgets.
The insurer expects total claims in 2025 to remain close to 700, with the possibility of a spike around the year-end shopping season.
Asia has become a central part of this global picture as businesses outsource more functions and build intricate digital supply chains.
Karlis Trops, head of cyber and tech professional indemnity at Allianz Commercial Asia, said that while companies acknowledge the risks, managing third-party exposure is difficult because it demands collaboration between IT, procurement, legal and compliance.
Trops said Allianz has seen more claims linked to IT supply chain breakdowns in Asia, both from cyber intrusions and technical malfunctions.
This has pushed more companies to purchase cyber cover under contractual terms with their partners.
He added that Asian corporates are showing a rising appetite for cyber insurance, yet overall coverage remains lower than in Europe or North America.
Smaller firms in the region still tend to self-insure, leaving them exposed to potentially devastating losses.
Trops advised that businesses with operations in Australia, the US and the UK should consider multinational cyber policies, given the higher financial exposure from privacy lawsuits and regulatory penalties in those markets.
Jarrod Schlesinger, global head of financial lines and cyber at Allianz Commercial, projected that the cyber insurance market worldwide will more than double to above $30 billion by the end of the decade.
He said adoption is still limited, with many companies unaware that policies can extend beyond breach response to cover regulatory fines and business interruption.
Schlesinger added that cyber insurance is no longer just a financial product but an essential layer of resilience in an era of rapid technological change and expanding regulation.
