Cybersecurity Policy Report, Fitch Ratings: AI-Enabled Attacks Complicate Cyber Insurance Market, (Apr 17, 2026)
The advent of AI (artificial intelligence) models that are able to quickly find and exploit cyber vulnerabilities has shifted the “risk landscape” for cyber insurers, according to Fitch Ratings, Inc.
“AI is particularly disruptive to cyber risk because traditional vulnerability analysis was labor-intensive and offered limited financial upside for researchers, a gap AI now fills at scale and speed,” Fitch said in a report.
“This lowers barriers for attackers, expands third-party risks and could materially increase attack volume. While AI improves threat detection, accelerates incident response and enables continuous real-time threat intelligence, vulnerabilities are likely to outnumber patches in the short to medium term,” it said.
Fitch reported 11% growth in 2025 in “U.S. cyber insurance direct written premiums,” which reversed two consecutive years of declines.
“This shift reflects greater awareness of cyber exposure and a more competitive underwriting environment. Demand has strengthened as boards and management teams recognize that cyber events can disrupt operations, trigger legal liabilities, and impair revenue even when direct financial losses are limited,” it said.
The cyber insurance market remains profitable, Fitch added, but “deteriorating incurred direct losses and the growing influence of artificial intelligence signal increasing underwriting complexity.”
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