AI Risks Now Top Driver for SME Cyber Insurance Adoption, Finds GlobalData

Small and medium enterprises (SMEs) worldwide are increasingly adopting cyber insurance policies, with new research highlighting artificial intelligence (AI) risks as a primary motivator. According to GlobalData's 2025 SME Survey, professional advice plays a crucial role in driving SMEs to secure cyber insurance, with brokers being the most influential source. Specifically, 39% of SMEs cited broker advice as the key factor behind their decision to purchase cyber insurance. This underscores the importance of expert guidance in navigating the complex landscape of cyber risk management.

Beyond professional advice, perceived risks associated with emerging technologies like AI have become a significant concern for SMEs. The survey reveals that worries about AI-related vulnerabilities and cyber threats are now among the top reasons businesses seek cyber insurance coverage. This shift reflects growing awareness that AI, while offering operational benefits, also introduces new security challenges that can expose companies to data breaches, fraud, and operational disruptions.

The findings also indicate that traditional drivers such as regulatory compliance and past cyber incidents are less influential compared to the rising prominence of AI risks and expert recommendations. This trend suggests that SMEs are proactively addressing future-oriented threats rather than reacting solely to past experiences or external mandates. As cyber threats evolve, SMEs recognize the need for comprehensive protection that accounts for both current and emerging risks.

The role of brokers and professional advisors is particularly notable, as they help SMEs understand the nuances of cyber insurance policies and tailor coverage to specific risk profiles. Their guidance ensures that businesses do not underestimate the potential impact of AI-related cyber threats and are better prepared to mitigate financial losses resulting from cyber incidents. This advisory relationship is vital in a market where cyber insurance products are becoming increasingly sophisticated and varied.

Implications of this trend extend beyond insurance adoption. The heightened focus on AI risks may drive insurers to develop specialized products addressing AI-specific vulnerabilities, encouraging innovation in cyber risk assessment and policy design. Additionally, SMEs' proactive stance on cyber insurance could foster broader cybersecurity awareness and investment in preventive measures, ultimately strengthening the overall resilience of the SME sector against cyberattacks.

In conclusion, the GlobalData survey highlights a pivotal shift in SME cyber insurance adoption, with AI-related risks and professional advice emerging as dominant factors. This evolution reflects the dynamic nature of cyber threats and the critical role of informed guidance in helping SMEs safeguard their operations. As AI continues to integrate into business processes, the demand for tailored cyber insurance solutions is expected to grow, shaping the future landscape of SME risk management.