Cyber Insurance Outlook: Soft Conditions Continue as Risk Exposure and Uncertainty Grow

Why It Matters

The soft market provides a limited window to obtain expansive cyber coverage, yet rising business‑interruption risk and geopolitical uncertainty mean firms that neglect cyber resilience will face higher premiums and potential uncovered losses.

Key Takeaways

• Cyber insurance market remains soft with stable pricing through 2026.
• Insurers tightening underwriting, demanding stronger cyber security controls.
• Business interruption losses are increasingly under‑estimated by clients.
• Brokers should enhance client resilience now to secure favorable terms later.
• US‑Iran tensions add uncertainty, but no immediate market impact observed.

Summary

The panel on New Zealand’s cyber insurance market underscored that conditions remain soft, with pricing largely stable through 2026 and ample capacity for buyers. Insurers are still aggressive in retaining business, yet they are tightening underwriting standards, demanding proactive cyber‑security reporting, assessments and stronger controls such as MFA, patching and EDR.

Claims activity is dominated by smaller social‑engineering incidents, while the most concerning, yet under‑appreciated, exposure is business‑interruption loss following cyber events. Participants warned that many firms still view cyber as a pure IT issue, overlooking the financial fallout of downtime and ransomware.

Damian urged brokers to lock in extra limits while the market is soft, Declan highlighted the need for improved cyber hygiene to meet future underwriting criteria, and Tom repeated the mantra “not if, but when,” noting that even small firms are vulnerable to ransomware. The discussion also touched on the US‑Iran conflict, which adds a layer of geopolitical uncertainty but has not yet translated into measurable market shifts.

For brokers, the implication is clear: use the current soft market to secure broader coverage, but simultaneously elevate client resilience and risk‑management practices. Doing so positions clients to retain favorable pricing when the market inevitably tightens amid rising business‑interruption risks and lingering geopolitical volatility.

Original Description

New Zealand’s top cyber insurance experts break down the 2026 market outlook, warning that business interruption remains one of the most underestimated cyber risks facing clients today. In this Insurance Business TV power panel, Damien Schade, Decklyn Thomson and Tom Arnott discuss soft market conditions, tightening underwriting, ransomware exposure and whether the US-Iran conflict could reshape cyber risk and pricing.