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Cyber risk now leads the worry list across the insurance market. The cyber insurance gap still holds. Munich Re and the Insurance Information Institute confirmed both points today. They released RiskScan 2026, a cross-market study of US and UK risk views.
The study polled more than 1,700 people. It spanned consumers, business owners, brokers, and carriers. Cyber incidents ranked first among insurance risks. Cyber scored 55% across the combined market. It scored 53% in the US sample. Business interruption followed close behind.
Cyber Ranks First Across the Market
Most groups named cyber a leading concern. Middle-market leaders cited it at 61%. Consumers reached 60%. Small business owners followed at 58%. The figures show broad awareness of the threat. They do not show broad coverage. That gap drives the report’s core warning.
Cyber Is Now a Business Interruption Problem
The survey reframes cyber for finance and legal leaders. Respondents treat a breach as an operational event. The damage includes shutdowns, lost revenue, and reputational harm. Munich Re’s claims data backs this view. Business interruption ranks among the largest sources of cyber claims. Privacy liability and incident response costs follow.
The main loss drivers stay familiar. They include ransomware, data breach, and business email compromise. Denial-of-service attacks round out the list. Third-party and supply chain exposure compounds the threat. Financial firms now face direct attacks and vendor leaks together. One incident can stall a whole operation.
Munich Re Specialty Chief Claims Officer Colin Masson framed the interconnection plainly. “A cyber incident can trigger business interruption, a natural catastrophe can drive litigation,” he said.
The Small Business Gap
The cyber market keeps expanding. Munich Re projects growth from $14.7bn in 2025 to $28.1bn by 2030. Coverage still lags for smaller firms.
NetDiligence reviewed 10,402 cyber claims from 2020 to 2024. Firms under $2bn in revenue filed 98% of them. Many owners know the risk. Few buy the policy. The FBI reported losses of nearly $21 bn in 2025. That figure raises the stakes for any uninsured company. Florian Happ, Cyber Team Lead at Munich Re US, named the mission. “Our goal is to reach the uninsured and underinsured,” he said.
Where the UK and US Diverge
The two markets agree closely on cyber. They split more on the weather. That difference matters for any multinational buyer.
Flood ranked as the top natural peril in both countries. The next worry differed by location. US respondents named winter storms at 39%. UK respondents named excess rainfall at 44%. PFAS liability shows a similar split. It registered near 20% across the market. US carriers flagged it most, at 37%. The pattern reflects lived experience. Buyers fear the perils they meet most often. Cyber, by contrast, crosses borders with ease.
The Five-Year Shift
The forward view changes the order. Natural catastrophes rise to the top at 52%. Cyber holds firm at 47%.
AI tops the emerging-technology list at 70%. Carriers now weigh AI errors and liability inside cyber cover. Most policies already respond to AI-driven breaches. Affirmative AI cover still splits the market. Cyber does not fade from the picture. Digital systems now run critical infrastructure in both nations. A single failure can spread across sectors.
HSB President and CEO Jeff O’Shaughnessy described the change. He said, “The distinction between digital and physical risk is fading.”
What It Means for Buyers
The report points to a clear duty for finance and legal teams. Treat cyber as a balance-sheet risk. Map it to business continuity, not just IT. Education remains the lever for closing the gap. Brokers need scenario-based training. Buyers need a plain view of their exposure.
Sabrina Hart leads Munich Re Specialty in North America. She said the moment calls for more than risk transfer. “It calls for integrated thinking, deep expertise, and a forward-looking approach.”
FAQ -Cyber Insurance Gap
RiskScan 2026 is a joint study from Munich Re and the Insurance Information Institute. It surveyed more than 1,700 people across the United States and the United Kingdom. The sample covered consumers, business owners, brokers, and carriers.
Cyber incidents rank first today. They scored 55% across the combined market. Business interruption and new technologies followed.
Small firms file most cyber claims yet often carry no cover. NetDiligence found 98% of studied claims came from firms under $2bn in revenue. Many owners know the risk but skip the policy.
The two markets see eye to eye on cyber. They diverge on the weather. US buyers fear winter storms most after a flood. UK buyers rank excess rainfall higher.
Treat cyber as a balance sheet and continuity risk, not an IT line item. Map exposure to revenue, contracts, and recovery time. Review coverage for AI and business interruption gaps.
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