Warning that artificial intelligence increases the risk of global cyber attacks

Munich Re said in a report released on April 4 that it has seen a surge in cyberattacks in recent months, with ransomware accounting for the majority of the attacks. Last year alone, the number of attacks targeting vulnerabilities in software development and distribution doubled compared to the previous three years.

Data integration portal Statista predicts that global cybercrime will cause annual losses of $13.8 trillion by 2028, up from $8.15 trillion in 2023.

Additionally, Munich Re experts warn that attacks are becoming more “automated and personalized” as attackers can use phishing emails and AI-driven fake phone calls to trick victims.

On the positive side, however, Munich Re says AI will increasingly support cybersecurity efforts. AI and related technologies can be used to enhance detection and response capabilities, and can also be applied in the cybersecurity insurance industry.

Cyber ​​insurance has become a key part of cybersecurity risk management over the past decade. The cyber insurance market has nearly tripled in size over the past five years and is expected to nearly double to around $29 billion by 2027, according to Munich Re.

While cyber insurance has helped build resilience, Munich Re warns that the insurance industry’s ability to absorb risk has natural limits. Juergen Reinhart, cybersecurity expert at Munich Re, said the private sector cannot handle the most serious systemic cyber risks, such as the loss of critical infrastructure or damage from cyber warfare.