Difficulties in assessing cyber risks compromise capacity for cyber cover, as per a GlobalData poll. Meanwhile, Howden’s acquisition of Cybeta’s intellectual property (IP) bridges this gap, promising enhanced cyber threat pattern recognition, more preventative approaches, and fairer pricing.
According to a poll conducted by GlobalData on Verdict Media sites in Q1 2026, 32.1% of insurance industry insiders state that assessing cyber risks accurately is the key barrier to offering cyber cover. This is viewed as the most prominent challenge by quite some margin.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
In this respect, the acquisition of Cybeta’s IP assets in the US is a decisive moment for Howden. The news comes after Howden set up a dedicated cyber practice in the US at the start of 2026, pointing toward an aggressive US expansion. 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 likelihood of an attack. In turn, this will enable the brokerage firm to alert its clients in real time so they can take preventative measures.
Traditionally, cyber insurance has been characterised by high premium base lines to ensure profit margins, as providers grapple with ever-evolving risks and historical data that is both unreliable and insufficient. Given that attacks see no frontiers, a single cyber incident has the potential to hit multiple policyholders globally in one go, adding further upward pressure on pricing.
Furthermore, the rise of AI-driven cyberattacks has created a more complex environment where traditional security measures are becoming obsolete. This is also contributing to high claim payouts and more selective underwriting. Overall, many smaller businesses have been priced out, unable to afford the right amount of cyber cover, if any at all. 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 advent of more robust models is positive for the industry. Better predictive analytics and more accurate underwriting will eventually translate into fairer pricing and improved risk appetite. In addition, there is also the potential for greater policy customisation, including cover areas which may have previously been deemed too risky and been excluded altogether. Going forward, more insurance providers will embrace innovative ways of adopting real-time solutions for more accurate underwriting and enhanced risk management strategies. The role of insurers could shift from being purely transactional (providing cover), leaning more toward forming strategic partnerships with clients and increasingly advising on ways to mitigate risks.
