Cyber Insurance Costs Have Risen for Professional Firms
Healthcare and law entities face higher premiums as ransomware tactics shift toward data exfiltration.
Updated on Sept. 30, 2026 in Cybersecurity
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Cyber insurance rates have increased for healthcare and law firms amid rising ransomware claims. Threat actors are increasingly prioritizing data exfiltration over full network encryption, forcing insurers to adjust their risk assessments.
Why it matters
The insurance market is hardening for these sectors due to frequent, high-cost claims and the threat of class action litigation. Law firms are particularly vulnerable because their business model relies on maintaining strict client confidentiality.
Insurance underwriters report a surge in business interruption and liability claims from SMEs during 2023 and 2024. While premiums rise for many, carriers currently maintain flexibility regarding security control requirements for smaller businesses.
The players
Florence Levy
She is an industry expert who identified the challenging segments within the current global cyber insurance market.
The details
Criminal syndicates favor data exfiltration as a more efficient way to leverage victims compared to full network encryption. Even when firms refuse to pay ransoms, they frequently face subsequent class action litigation and liability claims that drive up market costs.
Timeline
SME business interruption and liability claims were recorded throughout 2023.
SME business interruption and liability claims were recorded throughout 2024.
Florence Levy identified these challenging market areas on September 23, 2026.
The Tech Race
The transition toward data exfiltration represents a significant evolution in criminal methodology that renders traditional network-focused insurance models less effective. This shifts the arms race toward data loss prevention and necessitates a hardening of policy terms for high-value targets.
Professional firms and healthcare providers can expect higher overhead costs as they are forced to increase their cyber insurance budgets. Smaller businesses may find that while security requirements are currently flexible, they must still account for potential liability exposures.
The takeaway
Firms should prioritize data governance strategies to mitigate the impact of exfiltration-based attacks. Organizations must also prepare for increased legal scrutiny and potential class action risks regardless of whether a ransom is paid.
Further reading
For more on evolving digital threat landscapes, visit our Cybersecurity section.
Source note: This article includes information reported by Theinsurer.
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