Aon Reports Soft Cyber and Tech E&O Insurance Market Amid Growing Risk Challenges

Key Takeaways

• Cyber market remains buyer‑friendly through 2026 despite rising ransomware costs.
• Global average ransomware claim jumped 90% to $713k in 2025.
• US cyber loss ratio rose to 48.9% in 2024, up from 40.7%.
• AI‑driven attacks and stricter privacy rules tighten insurer underwriting.
• 38% increase in US cyber/E&O incidents in 2025 highlights growing exposure.

Pulse Analysis

Aon’s latest market assessment underscores a rare window of buyer advantage in cyber and tech E&O insurance. Insurers still hold abundant capacity, allowing organisations to negotiate favorable terms and maintain stable limits. This environment is expected to persist into 2026, giving risk managers leverage to align coverage with evolving business models. Yet the cushion is thinning as ransomware payouts swell and AI‑powered threats become more sophisticated, prompting a gradual shift toward pricing stabilization.

The risk landscape is being reshaped by several converging forces. Ransomware claim severity more than doubled last year, while AI tools enable attackers to automate and personalize exploits, raising the stakes for every breach. Simultaneously, privacy legislation—from the U.S. SEC’s cyber‑disclosure rules to the EU’s NIS2 directive—adds compliance layers that insurers now scrutinize closely. Geopolitical tensions, especially in the Middle East, further amplify the likelihood of state‑sponsored cyber campaigns targeting critical infrastructure.

For insurers, the response is a tighter underwriting discipline that evaluates cyber maturity, third‑party supply‑chain resilience and AI governance. For corporates, the message is clear: invest in robust cyber hygiene, expand coverage limits while pricing remains competitive, and harness advanced analytics to benchmark risk. Leveraging data‑driven insights can help firms fine‑tune limits, anticipate emerging threats and build long‑term resilience, ensuring that the current buyer‑friendly market translates into sustainable protection.