The cyber risk and insurance landscape in 2025 reveals a complex and evolving threat environment where insured companies are becoming increasingly resilient against attacks with strengthening of cyber security and preparedness and response capabilities helping to mitigate the impact of large cyber losses in 2025 to date, according to the latest Cyber Security Resilience Outlook from Allianz Commercial. 

“However, the reliance on digital supply chains, impact of expanding privacy regulation, and more sophisticated social engineering attacks targeting employees are broadening the scope of potential losses”, the report says.

Analysis of Allianz Commercial cyber claims shows the overall frequency of notifications during the first half of 2025 was in line with a year earlier after a significant year-on-year increase during 2023 compared with 2022. Despite the increasing sophistication and volume of attacks companies face, claims severity has declined by more than 50% while the frequency of large loss claims (> EUR 1million) is down around 30%, driven by larger companies’ cumulative investments in cyber security, detection and response.

However, the expanding risk landscape means there is no room for complacency. Ransomware attacks remain the top driver of cyber incidents, but in this year’s report, contingent business interruption, technology failures and privacy litigation emerge as main sources of losses – incidents such as wrongful collection or processing of data, and outages accounted for a record 28% of the value of large claims in 2024.

“Several ransomware events have hit the headlines this year, but overall, we see that insured losses from these attacks have decreased in 2025 to date. Insureds’ increased detection and response capabilities are helping to stop some attacks at an early stage. Every step an attacker progresses, and every minute that they are in the system, the impact goes up exponentially. The cost of a ransomware attack that progresses to data theft and encryption can be 1,000 times higher than an incident that is detected and contained early”, commented Michael Daum, Global Head of Cyber Claims at Allianz Commercial.

“The global cyber insurance market is predicted to more than double to close to USD 30 billion by the end of the decade, yet penetration remains relatively low. We need to underline that cyber insurance plays an important role in helping build resilience at a time of rapid technological and regulatory change. Many companies remain unaware of the breadth of coverage offered, which can include costs associated with breach response, business interruption, and regulatory fines and penalties”, said Jarrod Schlesinger, Global Head of Financial Lines and Cyber at Allianz Commercial.

The full report can be found here.