Forty-three percent of C-level executives worldwide are now thinking about buying cyber insurance. According to Munich Re’s 2026 survey, demand is rising because many companies still lack enough protection.
Estimated reading time: 7 minutes
More companies are looking into cyber insurance. Munich Re’s fourth annual Global Cyber Risk and Insurance Survey shows that 43% of C-level executives are now considering a policy, up from 35% in 2021. Awareness and concern about cyber risks and the cyber insurance protection gap are increasing. Executives realize their risk is growing, making this a strong market for new policies.
The survey includes over 9,500 responses from 20 countries and all major industries. It points to three main reasons for rising demand: more digital dependence, the fast growth of AI, and a continuing gap in cyber insurance coverage for all types of organizations. Eighty-nine percent of C-level leaders say their company isn’t well protected, a number that has gone up each year since 2021. Even though awareness is high, many companies still don’t have coverage. This is both a risk and a chance for insurers.
AI Leads The Technology Agenda
Artificial intelligence is now the top technology priority for companies. Seventy-one percent of C-level executives say AI is important to their business, up from 62% in 2024. Fewer executives see data analytics, cloud computing, or blockchain as equally important. Only 2% think none of these technologies matter, compared to 12% in 2022. More than half of organizations already use AI, and most expect good results. Still, 23% worry about negative effects. The biggest concerns are data security and privacy, mentioned by 52% of respondents, and cyberattacks, mentioned by 42%.
AI Risk Creates A New Coverage Signal
The survey shows that many companies want insurance that covers AI risks. Sixty-three percent of C-level executives say they would consider buying this type of coverage. Underwriters should see this as a sign of demand. Most cyber policies already include AI under their definition of computer systems, but many buyers don’t know this. Explaining products more clearly could help turn interest into actual sales.
Cloud Dependency Drives Accumulation Exposure
Cloud services are even more widely used than AI in businesses. While 57% use AI, 98% depend on the cloud. This matters for risk modeling because one cloud outage can impact many policyholders at once. The survey shows the financial risk: 27% of executives say a one-day outage would cost between 26% and 50% of daily revenue, and 11% say losses would be even higher. Munich Re uses this data to model cloud outages as a special risk scenario.
Cyber Insurance Protection Gap: Concern Is High
Sixty percent of C-level executives worldwide are worried about cyberattacks on their companies. Concern is highest in South Africa and India at 80%, followed by France at 71%, Japan at 70%, the US at 61%, and the UK at 59%. While concern is still higher than the number of actual incidents, the gap is closing quickly. Data breaches are the top worry for 64% of executives, and 25% have experienced one. Ransomware worries 38%, with 16% having faced it. Munich Re notes that ransomware, data breaches, business email compromise, and DDoS are the main causes of insured losses. Non-malicious events like cloud outages are also happening more often.
The Protection Gap Keeps Widening
The main takeaway is clear: 89% of C-level executives worldwide say their company isn’t well protected against cyberattacks. This number has gone up each year, from 81% in 2021 to 87% in 2024. Stefan Golling from Munich Re says, “I am deeply convinced that cyber insurance is of critical relevance in a world extremely driven by AI and data.” The growing protection gap shows both a risk management problem and a market opportunity. Executives know they are exposed, but coverage hasn’t kept up.
SMEs Are Now A Priority Target
Company size no longer determines the risk of a cyberattack. The survey finds similar risk levels for businesses of all sizes. Munich Re experts believe AI will make it even easier for attackers, putting smaller companies at greater risk. The idea that small businesses are safe is now outdated. Brokers working with SMEs should see this as a top priority.
Cyber Coverage Gap: Why Buyers Buy — And Why They Haven’t
Executives mainly buy cyber insurance for financial reasons. Forty-eight percent want business interruption coverage, and another 48% want liability protection. Forty-three percent value access to expert incident response, and 39% want peace of mind. These needs are closely tied to financial risk. However, 52% of C-level executives say their company has never been offered cyber insurance, a number that has stayed about the same for several years. This means brokers are missing many potential clients.
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Awareness Does Not Close The Gap
Companies are not improving their cybersecurity as quickly as they are becoming aware of the risks. The biggest internal challenge is that employees are not well trained in security, according to 40% of respondents. Other issues include not enough skilled staff (31%), poor integration of security tools (30%), and budget limits (24%). These are mainly management and organizational problems, not just technical ones. CFOs and General Counsel should see cybersecurity spending as a key financial issue that needs board-level attention.
Demand Is Rising. Distribution Must Follow.
Forty-three percent of C-level executives say their company is thinking about buying cyber insurance, up from 35% in 2021 and 2022, and 41% in 2024. While interest is growing, there is still a big gap between those considering and those actually buying policies. The survey points to two main solutions: reaching more potential buyers and making products easier to understand. Many executives want coverage but have never been contacted, and those who have often don’t get clear information about what is covered. To close the protection gap, brokers and insurers need to improve both outreach and communication.
What This Means For The Market
The Munich Re 2026 survey sends a clear message: buyers are very aware of cyber risks, but most still lack enough protection. As companies rely more on AI and cloud services, their risks are growing. Demand for cyber insurance is rising in all industries and company sizes. There is a real market opportunity, but closing the protection gap will require focused action from insurers, reinsurers, and brokers.
FAQ – Cyber Insurance Protection Gap
What is the cyber insurance protection gap?
The cyber insurance protection gap refers to the difference between a company’s actual cyber risk exposure and the coverage it holds. Munich Re’s 2026 survey found that 89% of C-level executives globally believe their company is not adequately protected against cyberattacks — despite high awareness of the risk.
How many companies have never been offered cyber insurance?
According to Munich Re’s 2026 global survey, 52% of C-level respondents say their company has never been offered commercial cyber insurance. This figure points to a significant distribution gap in the market, rather than a lack of buyer interest.
Why do companies buy cyber insurance?
The top reasons companies purchase cyber insurance are financial. Forty-eight percent cite cover for business interruption losses. Forty-eight percent cite liability protection. Forty-three percent want access to specialist incident response services. Thirty-nine percent report peace of mind as a key driver.
How does AI affect the cyber insurance protection gap?
AI is expanding the protection gap in two ways. First, it is automating cybercrime and lowering the skill level required to launch attacks, which increases exposure — especially for smaller businesses. Second, 63% of C-level executives say their organisation would consider buying insurance that specifically covers AI risks, creating new demand that the market has not yet fully addressed.
What cyber threats concern executives most in 2026?
Data breaches top the concern list, with 64% of C-level respondents expressing worry. Data protection and compliance issues follow at 45%. Online fraud registers at 44%. Business interruption concerns 41% of executives. Ransomware registers at 38%. Cloud outages and digital supply chain disruption round out the top threats.
