AI-Driven Cyber Threats to Boost Cyber Insurance Premiums by 15 Percent in 2026

Cyber insurance premiums are projected to rise 15% in 2026, driven by a rapidly evolving threat landscape fueled by artificial intelligence. According to a new Forrester Research report, AI technologies are expanding the cyber attack surface while also enhancing the capabilities of malicious actors. For claims adjusters, this shift signals an increase in claims volume and complexity, especially in cases involving data breaches, ransomware, and third-party software vulnerabilities.

Rohit Makhijani, a principal analyst at Forrester, compares AI integration to expanding a house: the more there is to protect, the more coverage is needed. As insurers adapt to AI-enabled threats, cyber insurers are urged to play a more proactive role, providing tools and services that help reduce exposure before claims occur. This aligns with a broader shift toward preventive risk management in cyber lines, which adjusters may see reflected in new underwriting protocols and documentation standards.

At the same time, Forrester predicts that AI and automation will help the top 50 insurers reduce expense ratios by two percentage points. The efficiency gains come as carriers face pressure to protect margins amid slower growth. However, these gains are not evenly distributed; large insurers with deep pockets like Chubb and The Hartford are pulling ahead, while smaller carriers struggle to catch up. For adjusters, this uneven adoption of AI tools could lead to a bifurcated claims handling experience across the market—streamlined in some areas and inefficient in others.

As AI becomes both a tool and a threat, adjusters will need to navigate a dual reality: supporting new, tech-enabled risk assessments while investigating increasingly complex, AI-fueled cyber claims. Those who adapt quickly to new workflows and technology standards will be better positioned in an industry undergoing rapid transformation.