Last Updated on August 19, 2025 by Jacques Wong, B.Sc.
Introduction
Cyber Insurance has quickly become the must-have in every risk management toolkit. And as a broker, you’re in a unique position to lead the charge.
As technology becomes the backbone of every business, the threats are growing faster than ever. We’re not just talking about annoying pop-ups or spam emails. We’re talking about adapting to full-blown business disruption, financial loss, and reputational damage that can take companies down.
That’s where you come in.
As a broker, you’re on the front lines of a rapidly escalating crisis. Ransomware attacks, phishing scams, and digital extortion are surging at unprecedented levels, and the wave of cyber insurance claims rising alongside them is impossible to ignore. From local retailers to multinational corporations, no one is immune. Businesses need guidance, you’re in the best position to help clients navigate coverage decisions that could make or break their business in a crisis.
If cybercrime is the virus, cyber insurance is the antidote.
But let’s be clear: cyber insurance isn’t a one-size-fits-all fix, and your clients need to know that. Like any good medicine, it only works if you take the right dose, at the right time, and pair it with a strong defense. As a broker, your role is to help businesses prepare, assess their risks, and build the right strategy.
So where do we go from here? That’s where information becomes your best ally. In this article, we’ll unpack the real reasons behind the spike in cyber claims, spotlight the industries most impacted, and most importantly, give you the insight you need to better support your clients and stay ahead of the curve. Whether you’re looking to break into cyber insurance or sharpen your edge, this is your roadmap to becoming not just a seller of policies but a trusted advisor in one of the fastest-growing, most high-stakes areas of insurance today.
What’s Driving the Rise in Cyber Insurance Claims
A digital ambush hits. Systems go down. Data is stolen. And suddenly, a business is left to pick up the pieces. That’s when the insurance claim hits, adding to the growing wave of cases that insurers and brokers must untangle and pay out. Hackers are following the money, and cyber losses are skyrocketing. So what’s behind this?
Firstly, ransomware is the public enemy #1. With just one click, systems freeze, data is locked, and businesses are left with no choice but to pay a hefty ransom or deal with significant operational disruptions. In 2024, ransomware attacks accounted for nearly 20% of all cyber claims, with an average loss of $292,00, making it the most costly type of attack.
Phishing and business email scams are also thriving. In fact, 60% of all cyber claims in 2024 were caused by email-based attacks, including impersonation of executives and vendors. Business email compromise scams alone led to an average loss of $35,000, a 23% increase from the previous year. Nearly one in three of these scams resulted in a direct funds transfer to the attacker, with average losses of $106,000 in those cases.
On a larger scale, these individual attacks transform into systemic events. In 2024, attacks on CDK Global and Change Healthcare exposed just how damaging third-party breaches can be. CDK’s software shutdown disrupted dealerships across North America, causing an estimated $1 billion in losses. The ransomware attack on Change Healthcare impacted over 90% of U.S. pharmacies, with damages reaching nearly $2.87 billion.
But it’s not just about more incidents, it is also bigger, more dangerous and expensive. Claim severity and frequency are at all-time highs. Insurers are taking an active role in risk management by offering ongoing monitoring and early attack detection, but when disaster strikes, recovery can still take years and cost millions.
Industries Most Affected by Cyber Claims
Some industries are in the cyber crossfire more than others.
When talking about healthcare, patient data is pure gold on the dark web. Ransomware can shut down hospitals, risking thousands of lives. Linked to this, finance and insurance are common targets, because they’re a digital fortress filled with high-value data, everything from banking credentials and credit histories to ID documents and financial transactions.
Education isn’t left behind. Many institutions fall under the nonprofit category, which saw a 1.34% claims frequency in 2024 and a 12% rise in claim severity, with average losses reaching $73,000. Limited resources, large amounts of users, and valuable data make schools surprisingly vulnerable. Small businesses aren’t spared either as they are often overlooked by IT teams, but not by hackers. They’re the low-hanging fruit of the cybercrime world.
Let’s talk about a real case scenario: A small accounting firm suffered a six-figure business email compromise loss when a fraudster impersonated a client and requested a bank transfer. Their cyber policy responded, but delays in claim processing and gaps in internal verification caused reputational damage that lingered long after the money was recovered.
Cyber insurance is evolving to match the increasing complexity of digital threats. Insurers now require stronger security measures, like multi-factor authentication. Policies are becoming more tailored, with exclusions for outdated systems and optional add-ons for specific risks. Overall, coverage is shifting from reactive protection to proactive partnership, rewarding businesses that invest in cybersecurity.
How Insurers and Underwriters Are Responding
Insurers are no longer just paying out; they’re playing an active role in defense. As cyber claims continue to climb in both volume and severity, insurers are no longer treating cyber as a side product; they’re reshaping the entire approach to coverage, starting with underwriting.
Forget the days of generic applications and rubber-stamp approvals. Underwriting has tightened to perform complex and multilayered risk assessments.
If we need a good defense, we need to understand our own capabilities. In this case, attack surface scans involve insurers analyzing a company’s digital footprint like a hacker would, exposing vulnerabilities. Security questionnaires are more focused on critical controls like MFA, secure backups, VPN usage, dual authentication, employee training, and incident response plans. Claim history, third-party vendors, and sector-specific risks are all evaluated.
The result is underwriting as a real-time cybersecurity audit. These findings drive changes to premiums and policy terms. The results of these audits are passed back to the insured to better inform them of their vulnerabilities and how to address them.
As risk grows, so do numbers. Premiums are rising for organizations without basic security controls or in high-risk industries. Exclusions are expanding, due to some policies withdrawing coverage for ransomware or unpatched vulnerabilities. Deductibles are increasing and creating stricter sublimits applied to the most common events, like fraud. Therefore, renewals are no longer automatic and clients need to qualify annually to renew their coverage.
However, not everything is lost. Insurers believe that cyber hygiene equals better coverage. Insurers want to insure the businesses that are helping themselves. The more secure your client is, the better the deal they get on price, coverage, and support.
What This Means for Insurance Brokers and Agents
Insurers brokers and agents are now wearing more hats: advisor, educator, translator, and sometimes even part-time IT coach.
Clients today expect more than a quote: they’re looking for guidance, clarity and someone who can bridge the gap between technical threats and practical protection. That means brokers need to understand not only what’s covered, but also why, when, and under what conditions.
The shift requires brokers to be both confident and curious. You don’t need to be a cybersecurity engineer, but you do need to understand the fundamentals, like multi-factor authentication. You should know what MFA, phishing, and patching means and how they affect insurability. Understanding how insurers assess risk, price policies, and structure exclusions is now part of the package.
The relationship between client and seller becomes an asset, supporting clients to prepare for underwriting, identify weak spots, and respond quickly when incidents happen.
At the same time, the cyber insurance market is evolving so fast that yesterday’s knowledge can quickly become outdated. Staying up to date on emerging threats, shifting policy language, and real-world claims examples allows brokers to position themselves as true partners in risk.
This is exactly where PNC Learning comes in. Through accessible, up-to-date, and broker-focused training, PNC Learning helps professionals build fluency in cyber insurance without getting lost in technical language. The platform equips insurance brokers and agents with the tools to ask better questions, explain coverage more clearly, and guide clients with greater confidence.
For brokers who want to lead in this space, cyber insurance is a defining skillset. And with the right training and mindset, it’s a huge opportunity to differentiate, grow your business, and become a more valuable resource to every client you serve.
Preparing for the Future of Cyber Insurance
Cyber threats aren’t slowing down; they’re getting smarter. With AI-generated phishing scams and geopolitical cyber warfare already reshaping the landscape, the risks ahead are strategic. Now is the time to build your shield and fortress, and help your clients do the same. And that starts with brokers and agents stepping up to lead the charge.
So, how do you do that? You prepare. Stay curious. Adapt. Make learning about cyber trends, evolving threats, and shifting regulations part of your routine. The more you know, the better you can protect, not just yourself, but your clients. And speaking of clients, educate them. Be the one who explains that cyber risk isn’t just an IT problem; it’s a business problem. When they understand the “why,” they’ll start seeing the value of the “how.”
But above all, lead with trust. Be honest, be transparent, and be present. Many clients still hold the belief that cyber insurance is expensive and doesn’t cover much. That misunderstanding usually boils down to brokers not explaining how it works. Imagine telling your insurer you had a burglar alarm installed, but you didn’t. Then your house gets robbed. Of course, that claim won’t be paid. The same applies in cyber insurance, which is why it’s important to have the basic protections in place, such as enabling MFA on all critical services.
The brokers who thrive in this space won’t be the ones who just push policies, they’ll be the ones who build relationships rooted in clarity, confidence, and real-world value. You want to be the person your client calls when they get a suspicious email, not after the damage is done. That’s how you prevent crises, not just respond to them.
Why Cyber Insurance Brokers Are More Essential Than Ever
Cyber insurance is one of the most dynamic, fast-evolving, and high-impact frontiers in modern risk management. It sits at the intersection of technology, law, finance, and human behaviour, demanding a new kind of insurance professional: one who can navigate complexity, think critically, and speak the language of both cybersecurity and business.
For brokers and learners, this rapid evolution is a massive opportunity to rise above the noise and redefine your role. In a market where many are still catching up, those who choose to lean in, stay informed, and build true technical fluency will stand out as trusted advisors, not just transaction facilitators.
This is your moment to lead with confidence, to ask smarter questions, to guide your clients with clarity, and to be the voice of calm when things go wrong. And you don’t have to do it alone. With the right support system like the practical, broker-focused training from PNC Learning you’ll have the tools and insights to turn uncertainty into advantage.
The future of insurance is cyber. The future of brokering is expertise. And the future is yours to own.
Be ready to explore all of the PNC resources and step up your cyber game just like Halina and Papillon:
” Hi Jack, Thank you for reaching out. I passed my exam with 92% mark, thanks to your program!! 🙂 I have decided to join an insurance brokerage. It is my 3rd month and I truly love it.”
–Halina G
Hi Jack, Just want to let you know that i did pass the exam! With a good mark of 81%! Quite an achievement for me for a first time taker. Can’t further express how happy I am. Thanks for your course material and all the support whenever i need some clarifications! Everything was on point and what I just needed to know to pass the exam. Now my next step is to find a firm that will hire me as a broker. To be honest im quite anxious about this as i’ve never been to this field before. Any insights on what should i expect on the job? Or what would be the deals they might offer me? I would greatly appreciate any insight you can provide.
–Papillon A
View more past student experiences on the PNC website.
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Explore our PNC Learning insurance exam prep courses to stay ahead of the curve. The risks may be changing—but with the right knowledge, so can you.
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