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Key insights

  • Ransomware and deepfake attacks are accelerating in scale and sophistication, reshaping the global cyber risk landscape.
  • Traditional cybersecurity insurance models are no longer equipped to match today's fast evolving threats.
  • A data-driven approach transforms cyber insurance by replacing assumptions with precise, validated insights that enable insurers and businesses to pinpoint vulnerabilities and tailor coverage accurately.
  • Analytics enhances underwriting quality while uncovering cost efficiencies.
  • Brokers play a pivotal role in helping companies strengthen cyber resilience and in selecting the right protection.

Ransomware and deepfake attacks are disrupting the cyber landscape, and threats have become more sophisticated and harder to detect. The World Economic Forum's Global Risks Report 2026 confirms this point: Cyber insecurity now ranks among the most severe short-term global risks facing organizations.1 With these developments, traditional cybersecurity insurance models and frameworks may need to be reassessed.

When richer data, sharper analytics and evidence-based insights back cybersecurity insurance, it can help organizations better understand complex cyber exposures and build insurance programs that reflect the changing nature of real-world risks.

The need for cybersecurity insurance: The evolving cyber threat landscape

Of all the cyber threats facing organizations today, ransomware attacks are among the most disruptive. According to a leading cybersecurity firm, global ransomware activity rose by 58% in 2025, with data from 7,515 organizations posted to dark web leak sites during the year, the highest number recorded.2 Although all sectors were affected, the manufacturing sector was the most targeted, accounting for 14% of attacks, followed by the technology sector (9%) and retail/wholesale (7%). These statistics highlight why strong ransomware protection is no longer optional. Regardless of their sector, organizations have to deal with the lengthy financial and operational repercussions of such attacks.

Deepfake technology has also given rise to numerous cyber risks. Leveraging deepfake technology, threat actors create AI-generated audio and videos impersonating leaders, senior management or other authoritative figures, which can mislead employees or manipulate communications. This deception has the potential to damage trust and reputation within and outside of an organization.

One thing is abundantly clear: Effective ransomware protection and broader cyber risk management must evolve as fast as the threats themselves.

Leveraging data analytics for smarter cyber risk management

Organizations may believe they're safe from cyber risks simply because they haven't been attacked yet or think certain systems aren't exposed. However, when a data-driven approach is applied to cybersecurity insurance, organizations can move beyond broad, unverified assumptions and instead focus on clear, evidence-based insights. Insurers and businesses can work together to analyze incident trends, system vulnerabilities, industry-specific risks and even attacker behavior to understand where real exposures lie.

The goal is to identify hidden weaknesses and highlight undervalued strengths. This process helps businesses tailor their cyber coverage to actual and specific needs rather than generic categories. It can also uncover cost efficiencies and support precise underwriting. As a result, organizations are better equipped to anticipate threats and respond quickly with decisions grounded in reliable, company-specific data.

A broker's role in shaping cyber insurance policies

Cyber threats are evolving quickly, and businesses must stay up to date with the latest practices in cyber resilience and look for relevant guidance to target the risks they face. With the assistance of a reliable and trusted insurance broker, businesses can better understand their risk profile and develop the right strategies to protect themselves on an ongoing basis. By identifying a company's strengths and vulnerabilities, cyber risk specialists can identify and curate the right coverage to keep each business protected.

Frequently asked questions about cybersecurity insurance

Here are quick, straightforward answers to the most common questions about cybersecurity insurance — from its core purpose and the value of a data-driven approach to the steps organizations can take to strengthen their cyber resilience.

What is cybersecurity insurance and why is it important?

Cybersecurity insurance plays an important role in safeguarding businesses from the financial impact of cyberattacks, including data breaches, business interruption and recovery costs. Tailored insurance helps businesses build a safety net that protects against emerging risks such as deepfakes and ransomware attacks, while strengthening their ability to recover quickly when a cyber breach occurs.

How does adopting a data-driven approach differ from traditional cyber insurance methods?

With data analytics, an organization can better understand its specific risks and build cybersecurity insurance programs that align with actual exposure. Data analytics can help businesses make decisions tailored to their needs, rather than relying on a one-size-fits-all approach.

How can businesses improve their cyber resilience?

Building cyber resilience starts with employee training and regular risk assessments. In addition, businesses may want to invest in cybersecurity insurance that aligns with their risk profile to optimize coverage. Cybersecurity specialists at insurance brokers such as Gallagher can help clients understand their risk exposure and provide ongoing guidance to stay ahead of evolving threats.

Published February 2026

Sources

1"Global Cybersecurity Outlook 2026," The World Economic Forum, 12 Jan 2026.

2"GRIT 2026 Ransomware & Cyber Threat Report," Guide Point Security, accessed 22 Jan 2026.