Artificial intelligence is amplifying cyber risks rather than creating new categories of insured loss, according to Swiss Re.

In a new report, Building a Sustainable Cyber Market in the AI Era, the company says the global cyber insurance market continues to grow even as AI, ransomware and increasing digital dependency reshape the underlying risk landscape.

The reinsurer says threat actors can use AI to accelerate vulnerability identification, automated attacks and next-generation phishing, but businesses can deploy it to improve threat detection, incident response and cyber resilience.

“AI is not creating an entirely new cyber risk landscape but it is amplifying the risks we already know,” head of cyber key accounts Fabian Willi said.

“AI-related cyber claims remain limited today, but clarity over how existing cyber policies respond will become increasingly important as exposures evolve.”

Swiss Re highlights two major growth opportunities for the industry: closing the protection gap among uninsured companies, and addressing underinsurance among current insurance buyers.

SMEs remain largely uninsured, and large corporates may need to review their policies.

Severe cyber losses can exceed typical limits, particularly when ransomware or data breaches lead to prolonged business interruption, restoration costs, supply chain disruption and lost revenue.

Swiss Re head of cyber Dani Tobler said: “The cyber protection gap is not only about getting more companies insured; it is increasingly about whether the protection already being bought is enough for the losses businesses actually need insurance to absorb.

“For large corporates, our data shows that an average of 10 losses a year over the past five years would have exceeded the average policy limit of $US120 million ($166.97 million).”

The report finds competitive pressure continues to weigh on pricing, and global cyber rates have fallen for four consecutive years.

North America accounts for 65% of global premium, Europe 21%, Asia-Pacific 10%, Latin America 25%, and the Middle East and Africa 2%.