Munich Re flags intensifying cyber risk landscape amid geopolitical strains

With cyber insurance growing ever more relevant and cyber risks intensifying amid powerful geopolitical, technological and economic pressures, Munich Re has urged companies to place equal emphasis on resilience and protection, highlighting the need to deepen insurance penetration and strengthen collaboration to better support insureds and safeguard global economies and societies.

The global reinsurer’s “Cyber Insurance: Risks and Trends 2026” report highlighted a world shaped by geopolitical tensions, armed conflicts, and intensifying competition in future-focused industries, alongside an increasingly complex cyber threat landscape that reportedly demands decisive and proactive risk management.

From Munich Re’s perspective, the main drivers of insured losses are Ransomware, Data Breach, Business Email Compromise (BEC) and Distributed Denial of Service (DDoS).

Munich Re’s data on segments affected by cyberattacks in 2025 shows that government entities are the most targeted by a wide margin, followed by manufacturing and technology, underscoring the focus on critical infrastructure and high-value digital assets.

Financial services, telecommunications, and education also rank among the most impacted sectors, reflecting their reliance on data and connectivity.

A second tier—including energy and utilities, legal and professional services, and healthcare—continues to face substantial exposure, where disruption can have significant economic and societal consequences.

Meanwhile, sectors such as media and entertainment, aerospace and defence, transportation, and construction experience moderate levels of attacks, with retail, oil and gas, pharma, and automotive appearing comparatively less affected.

According to Munich Re’s report, both hindsight and foresight on the cyber threat landscape and trends indicate that threat scenarios will develop further, reportedly going far beyond ransomware.

Munich Re continued, “Especially against the backdrop of current geopolitical tensions and technological innovations, cyber threats are likely to become more diverse and far-reaching.

“This may further strengthen awareness for cyber risks and the substantial impacts on organisations’ reputation and core business activities. However, awareness alone can’t prevent financial losses; resilience and insurance can.”

Munich Re emphasised that anticipating exposures and future threat developments is essential for adapting underwriting, risk modelling and management, as well as for refining cyber insurance coverage and solutions.

The reinsurer also stated that, while cyber threats are not always malicious, they must consistently be treated as a priority. Effective cyber risk management, it said, should be holistic, integrated and subject to continuous review.

Munich Re further highlighted that, despite public attention focusing on large corporates, most cyber incidents and claims it records involve micro-companies and SMEs. In its view, cyber protection is therefore a concern for organisations of all sizes and across all industries.

Finally, the company stressed that deep-dive data analytics on cyberattacks and losses are critical to improving the understanding and quantification of cyber risk.

The firm concluded, “The cyber insurance industry’s goal is to support clients recognise, understand, and optimally mitigate their risks. Insurance doesn’t just provide compensation after a loss; it also helps to raise exposure awareness, increase cybersecurity, and protect companies and organisations of all sizes from the potentially massive disruptions that incidents can entail.

“Looking ahead, Munich Re remains focused on challenges and opportunities in the strategic field of cyber insurance, working hand in hand with partners and clients. By increasing cyber insurance penetration and collaborating globally on this task, players can support insureds and protect global economies and societies.”

Thomas Blunck, CEO Reinsurance, Munich Re, commented, “Cyber insurance is more relevant and cyber risks are more vibrant than ever. From the outset, Munich Re has been a strong pillar of the cyber insurance market. Our strategic approach allows us to weather uncertain times because we can rely on our extensive underwriting expertise, discipline and a long-term business orientation aimed at supporting a sustainable market.

“Munich Re continually invests in robust in-house modelling and regularly monitors and quantifies cyber threats, allowing us to adapt our risk assumptions and solutions. Our unchanged goal: to help clients secure their business opportunities in a hyper-connected world.”

Stefan Golling, Board of Management, Global Clients and North America, Munich Re, said, “In response to powerful geopolitical, technological and economic stressors, companies need to focus equally strongly on resilience and protection.

“Operating in the digital era involves threats that no business leader can afford to neglect: It is long overdue that the long heightened risk awareness translates into adequate C-level action.

“In the interest of making businesses more resilient and to further increase cyber insurance uptake, Munich Re welcomes both competition and cooperation. We will continue to expand our highly diversified, profitable portfolio with disciplined risk appetite.”

Jürgen Reinhart, Chief Underwriter, Cyber, Munich Re, added, Munich Re’s cyber business philosophy is unchanged: understand, assess, quantify and make cyber risks insurable. Yet the lion’s share of cyber risks is still uninsured, even though they are insurable.

“As our Cyber Risk and Insurance Survey 2026 shows, nearly 9 out of 10 C-level respondents don’t feel their company is adequately protected against attacks, which I take as a call for insurers to step up their efforts. Cyber insurance is relevant, has proven its effectiveness, and is ready to grow.”