Cyber Insurance Demand Rises as Awareness Gaps Persist, Munich Re Finds
Interest in cyber insurance has climbed sharply among corporate decision-makers worldwide, with 43% of global C-level executives saying their company is considering a policy and will very likely buy one, up from 35% in 2021, according to the Munich Re Global Cyber Risk and Insurance Survey 2026.
The survey, which gathered responses from more than 9,500 people across 20 countries, found that despite growing demand, significant gaps in cyber insurance protection remain, leaving many organizations exposed to uncovered financial and operational losses when a cyber event occurs.
Awareness, Not Just Price, Limits Adoption
While the cost of coverage remains a concern, Munich Re found that awareness and product understanding are now equally significant barriers to adoption. Among global C-level respondents without cyber insurance, 34% cited price as a reason in 2026, up from 27% in 2021. But 26% said they did not know cyber insurance existed in both 2026 and 2021, and 21% said they did not understand the product or what it covered, up from 15% in 2021. Insufficient scope of services was cited by 26% in 2026, compared with 11% in 2021.
Access to coverage also varies widely by company size. Just 33% of businesses with annual revenue of $1 million or less said commercial cyber insurance had ever been offered to them, compared with 65% of companies with revenue between $1 billion and $5 billion, Munich Re found. Overall, 52% of global C-level respondents said they had been offered coverage in 2026, up from 51% in 2024, 42% in 2022 and 34% in 2021. Micro and small businesses, the survey noted, are less likely to have been offered coverage than medium-sized and large corporates.
When seeking information or advice on cyber insurance, 43% of global C-level executives said they would prefer to hear directly from an insurance company, compared with 21% who favored an insurance broker, and 15% each for financial institutions and independent online comparison portals, according to the survey.
Buyers See Coverage as More Than Financial Protection
Reimbursing financial losses remains the leading motivation for purchasing cyber insurance, cited by 48% of global C-level respondents for business interruption losses and 48% for liability losses. But access to expert support and services was nearly as important, cited by 43%, followed by peace of mind at 39%, business partner or client requirements at 35%, compliance with regulations or standards at 34%, and better understanding and quantification of cyber risk at 21%.
Munich Re said these findings show organizations increasingly view cyber insurance as a component of broader cyber resilience rather than purely a risk-transfer tool.
The top two reasons for purchasing coverage also varied by company size, with the share of respondents citing them generally rising alongside annual revenue, according to the survey. Interest in buying coverage also varied widely by industry, ranging from 10% among respondents in one sector to 55% in another, which Munich Re said points to differing perceptions of cyber risk across industries.
Claims Show Small Businesses Are Not Immune
Munich Re’s claims examples illustrated how cyber incidents affect organizations of varying size and revenue. A medical practice with 1 million euros ($1.1 million) in revenue faced a ransom demand of about $2,500 after a weekend ransomware attack encrypted all servers, though recovery from outdated backups ultimately cost more than the ransom itself. A hotel group with 19 million euros ($19.2 million) in revenue paid an 80,000-euro ($89,150) ransom after an attack encrypted all systems, including backups, shutting down booking systems across five properties nationwide.
Robin Grunewald, senior analyst at Google Threat Intelligence Group/Mandiant, said in the report that threat actors will “continue expanding volume-based extortion attacks against small and non-U.S. entities, driven by A.I.-assisted mass reconnaissance and automated vulnerability scanning that eliminate scale barriers,” adding that “being small or located outside the U.S. no longer grants immunity, instead, attackers view smaller firms as fast, low-resistance targets.”
Munich Re also pointed to non-malicious sources of cyber risk, including technology failures, human error and emerging A.I.-related liabilities, as increasingly important contributors to operational disruption and financial loss alongside malicious attacks.
Jan Eich, head of cyber claims at Munich Re, said cyber risk “extends far beyond attacks” and that as organizations become more digital, cyber resilience means building protection against all forms of technology-related risk, including those that arise without malicious intent.
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