Cyber Insurance, AI & Rising Threats- What Agents Need to Know in 2026

Ready to build expertise in one of the fastest-growing areas of insurance? Explore the Risk & Insurance Education Alliance's Cyber RiskPRO® program and gain the knowledge you need to identify cyber exposures, explain coverage solutions, and serve clients with confidence in today's rapidly evolving cyber environment. Artificial intelligence is transforming the insurance industry, but it's also reshaping the cyber threat landscape. In a recent episode of Alliance Insights, Lisa Gardner spoke with Adam Connor, Area Executive Vice President at Risk Placement Services, about the current state of the cyber insurance market and what insurance professionals should expect over the next 12 to 18 months. One of Connor's key observations is that AI is rapidly becoming an everyday business tool. He described today's AI adoption as similar to the early days of online dating services. What once felt unfamiliar is quickly becoming mainstream. Insurance agencies are already using secure AI tools to analyze books of business, identify growth opportunities, improve retention strategies, and automate administrative tasks. At the same time, cyber criminals are leveraging AI to increase the speed and scale of attacks. According to Connor, social engineering and ransomware remain leading causes of cyber claims. AI lowers the technical barriers for threat actors, making sophisticated attacks easier to launch than ever before. Despite rising claims activity, the cyber insurance market remains competitive. Connor noted that many organizations continue to see flat renewals or even rate reductions due to new carrier entrants and strong marketplace competition. However, he expects the market to gradually harden as losses continue to accumulate. Connor also challenged a common misconception that smaller organizations are unlikely cyber targets. Many attacks use a broad, automated approach rather than targeting specific companies. Businesses that fail to maintain software updates, security controls, and employee awareness programs remain vulnerable regardless of size. Another important takeaway is the need for adequate cyber insurance limits. Connor cautioned that minimal coverage may create a false sense of security. With cyber losses often reaching millions of dollars, organizations should carefully evaluate whether their limits align with their exposure. As cyber threats continue to evolve, insurance professionals have an opportunity to help clients better understand both risk management and insurance solutions. While technologies may change, Connor's message was clear: cyber risk isn't going away, and organizations that embrace both cybersecurity and cyber insurance will be better positioned for the future. Cyber threats are evolving faster than ever, and clients are looking to insurance professionals for guidance. Build the expertise needed to identify cyber exposures, evaluate coverage options, and confidently navigate today’s cyber risk landscape with the Risk & Insurance Education Alliance’s Cyber RiskPRO® program. Learn more and take the next step in advancing your cyber risk knowledge. Focusing exclusively on risk management and insurance professional development, the Risk & Insurance Education Alliance provides a practical advantage at every career stage, positioning our participants and their clients for confidence and success.