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Cyberattacks remain a significant credit risk in 2025 as geopolitical tensions elevate and threat groups actively target the insurance sector, according to a report by FitchRatings.
The recent cyberattacks aimed at U.S. insurers, U.K. retailers and an Asian airport highlight a growing need for comprehensive cybersecurity across all industries and regions, the data showed, with companies prioritizing cyber resiliency in a better position to reduce negative impacts to their credit ratings.
“While these risks are difficult to predict and can have significant impacts, our analysis shows that companies prioritizing operational resilience, proactive governance and vigilant cyber strategies are far better positioned to mitigate negative credit consequences,” FitchRatings Senior Director Gerald Glombicki told PropertyCasulty360.
“As digital transformation accelerates, and with rising geopolitical tensions fueling more sophisticated attacks, boards and executive leadership must treat cyber resiliency as a strategic imperative,” he added. “Ultimately, robust cyber defenses and strong incident response capabilities are key to protecting both operations and credit profiles in an increasingly complex threat landscape."
Meanwhile, certain industries dubbed critical infrastructure like banking, energy, healthcare and government entities face more frequent attacks, according to FitchRatings, as diverse cyber risk profiles create unique challenges for regulatory and compliance requirements, causing them to lag evolving cyber threats.
In 2025, the cyber insurance market is projected to reach $21.67 billion after peaking at roughly $17.77 billion in 2024.
“The cyber insurance market is ever changing with new insurance companies entering the market and others departing,” said Arthur Armstrong, a partner in Reed Smith’s insurance recovery group.
“Likewise, policy forms are continuously evolving to address new and different cyber risks,” he added. “Unfortunately, this has led to more exclusions and sublimits that negatively affect cyber coverage overall. A policyholder should work with an experienced broker to ensure that it is obtaining appropriate coverage with respect to scope and available policy limits.”
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