A GlobalData survey revealed that professional advice and concerns about new technology like AI are key triggers for SMEs to invest in cyber insurance. The market is shifting towards more preventative measures, making specialized cyber policies more accessible for SMEs to protect themselves adequately.

GlobalData’s 2025 SME Survey found that professional advice, especially from brokers, is crucial in prompting SMEs worldwide to purchase cyber insurance. Concerns about AI adoption rank second, with SMEs feeling uneasy about the risks associated with the technology.

The rapid integration of AI in various industries is causing SMEs to worry about potential risks. Standard cyber policies often do not explicitly cover AI-related incidents, leading to a gap between clients’ expectations and policy coverage.

Standard cyber policies typically exclude losses from a business’s own AI tools providing incorrect outputs. Cyber insurance policies commonly cover losses from AI-powered hackers, but not always from AI-related incidents within the business.

Brokers and financial advisers are in a unique position to assess clients’ risks and match them with appropriate cyber insurance products. Offering policies with AI-related incident coverage or specialist policies alongside cyber insurance can help meet clients’ needs.

The market is moving towards more preventive measures, with professional advice and external factors influencing SMEs’ decisions to purchase cyber insurance. However, high costs and technology requirements can be barriers for SMEs. Insurers should focus on developing policies that cover common risks for SMEs.

According to a report by Life Insurance International, protection against AI risks is a significant reason why SMEs are investing in cyber insurance. This highlights the importance of understanding and addressing AI-related concerns in the evolving cyber insurance landscape.

Read more at Yahoo Finance: Protection against AI risks is a leading reason for SMEs to purchase cyber insurance