New Cyber Threat Trends for 2025 and Their Impact on Cyber Insurance
As technology continues to evolve at a rapid pace, cyber threats are becoming increasingly sophisticated and complex. The year 2025 is expected to bring new trends in cyber threats that will require companies to prepare accordingly and reassess their information security and insurance policies.
1. AI – Both an Offensive Weapon and a Defensive Tool
Artificial Intelligence (AI) is becoming a central tool for both attackers and organizations defending themselves. In 2025, hackers are expected to use AI to carry out more sophisticated attacks, customized for each target, such as generating highly realistic phishing emails and automated system breaches. At the same time, AI-based security solutions will be used to detect threats and monitor unusual activity in real time. The implication for insured companies? Businesses will need to demonstrate that they are adopting AI-driven security technologies to qualify for better insurance terms.
2. Ransomware Attacks Will Become More Sophisticated
Ransomware attacks will remain a major threat, but instead of random attacks, hackers will focus on organizations critical to the functioning of entire industries, such as infrastructure providers, healthcare, and finance. Ransom demands are expected to rise, and some hackers may add layers of extortion—such as threatening to expose sensitive information. In response, cyber insurance companies will tighten requirements for risk mitigation, including investments in advanced backup mechanisms.
3. Supply Chain Attacks Will Increase
Cyberattacks targeting suppliers and business partners will become a greater threat as hackers exploit weaknesses in third-party systems to infiltrate larger organizations. Cyber insurance is expected to include coverage extensions for such events but will also require insured companies to conduct comprehensive risk assessments on their supply chains.
4. Increasing Regulations and Their Impact on Cyber Insurance
New regulations, such as NIS2 in Europe and stricter requirements in the U.S., will require compliance with higher information security standards. Non-compliance with regulations could result in heavy fines and affect eligibility for insurance coverage. As a result, companies will need to invest more in regulatory compliance to maintain favorable insurance terms.
Regulatory Requirements in Africa
Many African countries are beginning to adopt new cyber regulations to protect businesses and citizens from attacks. These requirements include data protection laws such as South Africa’s Protection of Personal Information Act (POPIA) and additional legislation in Nigeria and Kenya that mandate stricter security measures. These trends are expected to impact policyholders, requiring them to demonstrate higher levels of information security.
Africa is witnessing a growing trend of stricter cyber regulations, but the standards are not as uniform as in Europe. While Europe has comprehensive regulations like NIS2 and GDPR, which mandate high levels of security and reporting, each African country sets its own regulations with varying levels of enforcement. Additionally, there are significant gaps in incident reporting requirements and data protection enforcement, but laws like POPIA in South Africa and similar regulations in other countries indicate a move toward international standards.
5. Cybercrime in Africa – A Growing Threat
Africa has seen a sharp rise in cybercrime, with many countries facing ransomware attacks, financial fraud, and impersonation of official institutions. Cybercriminals exploit weaker security infrastructures and a lack of awareness among small and medium-sized businesses. As a result, demand for cyber insurance in the region is increasing, and insurers are expected to develop tailored solutions to meet the needs of emerging markets.
6. Cyber Insurance Will Become More Interactive
Instead of a traditional insurance model based on claims after an event, insurers will begin offering “live” policies—including continuous monitoring of the insured’s security level and proactive recommendations for improving protection. Organizations that demonstrate improved risk management will be eligible for discounts and better terms.
Conclusion
The year 2025 will bring significant changes to the cyber threat landscape, presenting new challenges for businesses and insurers alike. To ensure effective protection, organizations will need to implement innovative technologies, comply with regulatory requirements, and ensure their cyber insurance policies provide adequate coverage for emerging threats.
Now is the time to reassess your information security policies and ensure that your cyber insurance is prepared to address the evolving reality.
Sheli Bremer-Tchaig, Adv.
Head of Insurance