As cyber threats escalate, cyber insurance is emerging as a critical safeguard for businesses, particularly small and midsize enterprises (SMBs) with limited cybersecurity resources. Coalition’s Cyber Threat Index 2025 underscored the growing role of insurance in mitigating financial and operational fallout from cyberattacks, highlighting ransomware as a leading driver of claims.
According to the report, most ransomware incidents originate from breaches of perimeter security appliances or remote desktop software. Stolen credentials and software exploits remain common entry points, while exposed login panels continue to pose a major risk.
Coalition’s analysis found more than 5 million internet-exposed remote management solutions, a vulnerability that cybercriminals frequently exploit. With more than 45,000 software vulnerabilities projected to be published in 2025, businesses face mounting security challenges.
In response, insurers are increasingly integrating proactive risk management into their policies. Coalition’s cyber insurance model combines traditional coverage with real-time threat monitoring and security alerts, helping policyholders address risks before they escalate. AI-driven risk prioritization has allowed Coalition to issue targeted Zero-Day Alerts, flagging only the most critical vulnerabilities.
In 2024, most alerts sent to policyholders focused on misconfigurations, such as exposed login panels and outdated software, which can leave businesses vulnerable to attacks.
For SMBs, which often lack dedicated cybersecurity teams, insurance is playing an increasingly active role in risk mitigation. While 60% of SMB owners cite cybersecurity as a top concern, only 23% say they feel prepared to handle an attack.
Insurers are responding by setting stricter security requirements for coverage, pushing businesses to adopt measures such as MFA, software updates, and proactive vulnerability management, according to the report.
As cyber threats evolve, the insurance industry is shifting from merely providing financial recovery to actively preventing attacks. Coalition’s findings suggest that businesses that prioritize security best practices not only reduce their exposure to cyber risks but also improve their insurability, potentially lowering costs in the long run.
