Cyber Market on Edge. Bigger Limits, Bigger Threats in 2026

Why It Matters

Expanded capacity and advanced underwriting tools give Canadian firms broader protection without triggering price spikes, reshaping risk transfer strategies in a rapidly evolving cyber threat environment.

Key Takeaways

• Mosaic doubles Canadian cyber capacity to $40 M per risk.
• Soft market keeps excess capacity affordable, encouraging larger cyber towers.
• Ransomware incidents rise 40%, but only 30% pay ransom.
• Brokers use incremental stacking to boost sub‑limits for cybercrime coverage.
• Insurers add proactive scanning and AI‑driven controls to curb claims.

Summary

The panel on Insurance Business TV examined Canada’s cyber‑insurance landscape in 2026, highlighting Mosaic’s decision to double its per‑risk limit to C$40 million and the broader shift toward larger cyber towers as excess capacity becomes increasingly affordable. Key insights included a soft market that encourages buyers to secure higher limits, a projected 40% rise in ransomware incidents yet only about 30% of victims actually paying a ransom, and a 77% drop in ransom‑payment frequency reported by Aon. Brokers emphasized incremental stacking of primary and excess layers to raise sub‑limits for cybercrime, while personal‑line carriers introduced new product options that allow individuals and small businesses to layer coverage. Notable remarks came from Derek May, who noted the limited financial impact of most ransomware leaks, and Addy Sharma, who pointed out that despite higher activity, severity remains low, keeping premiums soft. Miller Araujo underscored the growing use of proactive scanning, AI‑driven threat detection, and value‑added services to help insureds mitigate attacks before they materialize. The implications are clear: larger limits and flexible stacking improve coverage breadth, but low claim severity means pricing is unlikely to harden soon. Insurers will continue refining underwriting questionnaires, control benchmarks, and cloud‑risk endorsements, leveraging richer loss data and early‑warning technologies to sustain market stability while addressing evolving cyber threats.

Original Description

Featuring: Mila Araujo from NFP, Ady Sharma from Aon and

Derek May from HUB