As technology advances, so do the risks and exposures associated with digital products. These risks are a daily threat to businesses and individuals. Ransomware, phishing attempts, and AI-generated fraud, cyber risks are evolving faster than most people and organizations can keep up. Learn more about digital risks in 2025 and how agents and brokers can help policyholders manage these exposures with cyber insurance.
Digital Risks in 2025
Cyber risks have become more sophisticated and personalized. AI has enabled bad actors to create convincing deepfake-enabled scams, leaving companies and individuals vulnerable to these attacks. Small to mid-sized organizations may be the most at risk as they are often underinsured or uninsured against cyber risks.
Regulatory changes surrounding privacy laws and expanding contractual obligations for cybersecurity add to the challenges for businesses attempting to manage their digital risk. Many organizations are adding new technology and digital capabilities to stay competitive, meet customer demands, and lower costs, but these new digital capabilities also introduce new risks.
Cyber insurance is no longer an add-on or optional coverage to offer as an afterthought. Rather, it should be a core part of any policyholder’s risk management plan. Helping to build cyber resilience through insurance products and risk management techniques is a smart way for agents to engage with policyholders.
Four Ways Agents Can Help Policyholders Manage Digital Risks
Agents and brokers can take the lead on helping policyholders learn more about cyber insurance and how to manage their growing digital risks with these four strategies:
Stay educated about cyber insurance, risks, and trends.
Agents can be the experts when it comes to educating policyholders about their individual digital risks. Staying current through seminars, webinars, articles, classes, and research makes sense for agents who want to be considered expert advisors and partners on cyber insurance.
Review digital exposures at renewals.
Don’t wait for policyholders to ask about cyber insurance. Bring it up as a regular part of the renewal conversation to ask about changes to the policyholder’s tech stack, any phishing or ransomware attacks, any changes to digital security or processes, or any new AI-powered tools or software. Simple questions can often uncover complex exposures that need coverage.
Spend time explaining policy language and coverage.
During discussions with policyholders, spend the extra time to explain the nuances and complexities of their policy. Some policies are different in their conditions, exclusions, and definitions, so taking the time to explain these critical aspects of cyber insurance can help policyholders understand their coverage and know what to do in case of a cyber attack.
Offer standalone cyber insurance policies when appropriate.
Some policyholders may assume their general liability or business owner’s policy will cover their cyber exposure, but those policies often do not offer appropriate coverage. Explain the value and benefits of purchasing a standalone cyber insurance policy to these policyholders so they can make an informed decision, knowing what may be covered or excluded under each policy.
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The American Agents Alliance has been empowering independent P&C agents and brokers to thrive since 1962. Become a member today and learn more about topics like cyber risk and security with our timely blogs, seminars at our annual conference, and networking opportunities with other insurance professionals.
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