AI Cyberattacks Fuel Growing Concerns, but 32% of Corporations Still Lack Insurance
As large corporations increasingly rely on advanced technology and remote work, cyberattacks have become the top concern for risk managers, according to a new survey from Nationwide. Despite dedicating more time and budget to cybersecurity, risk managers are struggling to keep pace with evolving digital threats—especially those driven by AI. A full 77% expressed concern about their company’s vulnerability to generative AI attacks.
Preparation is high, with 92% of risk managers saying their company is prepared to recover from an attack, and 86% having a cyber incident response plan in place. However, 32% report their company lacks a dedicated cyber insurance policy, citing management's failure to recognize its value.
“As digital threats grow, a single cyberattack can cripple entire systems in minutes,” said Tim Nunziata, VP and head of Cyber Risk for Nationwide Excess and Surplus/Specialty. “While prevention and employee training are critical, they’re not always enough. Companies need robust cyber insurance to ensure financial stability after an attack.”
Top Risks for Large Businesses
Risk managers identified their biggest risks as IT and cybersecurity risks (50%), compliance and regulatory issues (47%), and criminal activity like fraud or vandalism (40%). When elaborating on their cyber concerns, 56% cited the rising frequency of attacks, 52% pointed to the growing threat of generative AI, and 32% noted inadequate employee training.
Additionally, 90% agreed that scams or fraud attempts that use generative AI have become increasingly sophisticated over the past 12 months, while 78% said they need more resources to protect against AI-driven attacks. Established cyber threats such as data breaches (32%), ransomware (21%), and phishing (13%) also continue to concern risk managers. More than a quarter (27%) also reported experiencing business email compromises in the past three years.
Challenges in Cyber Defense
Though virtually all risk managers (99%) believe cyber insurance is important, only 68% report that their company has coverage. Of those without coverage, 40% believe their current cybersecurity software is sufficient, 32% say management doesn't see the value, and 26% haven’t had it recommended by their broker.
Risk managers also face challenges in collaborating with other departments on cybersecurity due to varying levels of awareness and inconsistent terminology, leading to inadequate preparation across organizations.
A Role for Brokers
With 62% of risk managers reporting their company has experienced a cyberattack in the past three years, and 25% in just the past 12 months, brokers have a strong case to advocate for comprehensive cyber insurance. Among those attacked, 78% said the event disrupted operations and 74% experienced negative business impacts. Recovery for most took between one and six months, with 65% reporting that they’ve updated their policies in the past two years, mostly to increase coverage or limits.
“Cybersecurity is no longer just an IT issue—it’s a critical business priority,” said Nunziata. “Brokers can help risk managers make the case for comprehensive cyber insurance to mitigate financial impacts and ensure swift recovery. It’s not a matter of if an attack will happen, but when. The right protection can make all the difference in those moments.”
Learn more about Nationwide’s cybersecurity solutions for corporations here.