Difficulties in assessing cyber risks compromise cyber coverage capabilities, according to a GlobalData survey. Meanwhile, Howden’s acquisition of Cybeta’s intellectual property (IP) closes this gap, promising better recognition of cyber threat patterns, more preventative approaches and fairer pricing.
According to a survey conducted by GlobalData on Verdict Media sites in the first quarter of 2026, 32.1% of insurance industry experts say that accurately assessing cyber risks is the key barrier to offering cyber coverage. This is considered by far the most important challenge.
In this sense, the acquisition of Cybeta’s intellectual property assets in the US is a decisive moment for Howden. The news comes after Howden established a dedicated cyber practice in the US in early 2026, pointing towards aggressive expansion in the country. With this acquisition, Howden will be able to integrate threat intelligence data directly into its actuarial models, providing a better understanding of how risk scores correlate with the probability of an attack. In turn, this will allow the brokerage to alert its clients in real time to take preventive measures.
Cyber insurance has traditionally been characterized by high base premiums to ensure profit margins, while providers face constantly evolving risks and unreliable and insufficient historical data. Since attacks see no borders, a single cyber incident has the potential to affect multiple policyholders around the world at once, adding further upward pressure on prices.
Additionally, the rise of AI-driven cyberattacks has created a more complex environment in which traditional security measures are becoming obsolete. This is also contributing to high claims payouts and more selective underwriting. In general, many smaller businesses have been priced out, unable to afford the appropriate amount of cyber coverage, if any. GlobalData’s 2025 SME Survey shows low penetration rates for standalone cyber insurance, standing at 18.8% globally and 16.4% in the US, suggesting that underinsurance is common.
The arrival of more robust models is positive for the industry. Better predictive analytics and more accurate underwriting will eventually translate into fairer pricing and greater risk appetite. Additionally, there is also the potential for further customization of policies, including areas of coverage that were previously considered too risky and excluded entirely. In the future, more insurance providers will adopt innovative ways to adopt real-time solutions for more accurate underwriting and better risk management strategies. The role of insurers could shift from being purely transactional (providing cover) to leaning more towards forming strategic partnerships with clients and increasingly advising on ways to mitigate risks.
