Cyber Insurance Market in Turmoil Over State-Backed Attacks

Global insurers are racing to figure out how to avoid covering government-sponsored cyberattacks and catastrophic hacks, as large damages and some notable companies’ retrenching spook the market.

Chubb Ltd. is exploring higher prices and insurance deductibles for widespread cyber events. Beazley Plc is developing a new war insurance product outside of its standard cyber policy to cover hacks between nation-states. Other insurers are tweaking their policies to exempt acts of cyber terrorism.

Ransomware attacks increased by 87% in 2022 from the year before. Global cyber premiums will exceed $23 billion by 2025, reinsurer Swiss Re AG has said. Fewer ...