A 2026 survey of more than 800 U.S. insurance buyers and sellers by Munich Re US and the Insurance Information Institute shows cyber incidents, economic pressures, and artificial intelligence are the top market risks. Despite rising awareness, significant protection gaps persist in cyber and flood coverage, leaving many organizations exposed to increasingly interconnected threats.
Cyber and business interruption dominate risk agendas
Cyber incidents ranked as the top insurance risk for 53% of overall respondents, up from 48% in 2024. Middle market decision-makers and property and casualty agents and brokers registered the highest concern at 59%. The FBI's Internet Crime Report recorded nearly $21 billion in losses in 2025, underscoring the scale of the threat.
Despite this exposure, a protection gap remains. Data analyzed by NetDiligence showed 98% of cyber claims from 2020 to 2024 came from organizations under $2 billion in revenue. Many small and midsize businesses remain underinsured, often because cyber risk feels abstract compared to physical perils.
Business interruption ranked second, cited by 46% of respondents. Cyberattacks, natural disasters, labor strikes, and geopolitical conflicts can trigger substantial operational disruptions. A separate Gallagher survey found that 86% of companies incurred supply chain losses in the past year, while only about one-third maintained full coverage.
Natural catastrophes drive coverage concerns
Natural catastrophes ranked third among top insurance risks at 45%, up sharply from 35% in 2024. Non-peak perils such as floods, severe thunderstorms, winter storms, and wildfires drove much of this concern. Insured losses from non-peak perils reached a record $88 billion in the U.S. in 2025, with severe thunderstorm losses alone hitting $42 billion.
Wildfire concern rose across all segments since 2024. The January 2025 Los Angeles-area fires produced roughly $40 billion in insured losses, making it the most expensive wildfire disaster to date.
On the cost side, 58% of respondents cited the rise in frequency and severity of natural disasters as a primary driver of property and casualty insurance costs. Economic inflation followed at 55%. Legal system abuse was identified by 43% of respondents as a cost driver, up from 34% in 2024. The report noted this shift is meaningful, as middle market decision-makers and small business owners now share the concern previously held only by insurance professionals.
Artificial intelligence leads emerging technology concerns
Artificial intelligence was identified as the most impactful emerging technology by 71% of overall respondents, up from 64% in 2024. Property and casualty agents and brokers registered the highest rate at 78%. As the U.S. AI market grows from $173.56 billion in 2025 to a projected $976.23 billion by 2035, businesses are working to quantify the resulting operational, regulatory, and liability risks. Integrating AI for Insurance tools helps risk managers and underwriters better model these exposures.
Smart devices and the Internet of Things followed, cited by 45% and 39% of respondents, respectively.
Shifting perspectives on climate and industry value
Two other notable shifts emerged in the 2026 data. Both business professionals and consumers showed a substantial decline in concern about climate change, with its ranking dropping from first to sixth overall, falling to 30% from 48% in 2024.
Additionally, the survey asked respondents about the societal value of reinsurance and insurance for the first time. The top three responses were helping communities recover quickly after a loss, providing long-term financial stability, and encouraging risk prevention and resilience.
Why this matters for insurance professionals
Insurance professionals must address the widening gap between risk awareness and actual coverage, particularly for small and midsize businesses facing cyber and non-peak peril threats. Underwriters and brokers should proactively educate clients on the tangible financial impacts of business interruption and artificial intelligence liabilities, moving these risks from abstract concepts to quantifiable exposure categories.
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