Falling Cyber Insurance Signals Complacency

Cyber‑insurance premiums fell about 4% globally in Q2 and have declined for 12 consecutive quarters, even as many experts warn of rising AI‑enabled cyber threats. If market prices truly reflect aggregated risk assessments, this divergence suggests either market underestimation, risk transfer to other instruments, or measurement/coverage gaps in the insurance market. — This matters because insurance pricing is a real‑world signal that should shape policy and safety debates about AI cyber risk, regulatory priorities, and capital allocation for resilience.