U.S. cyber insurers in 2025 reversed a couple of years of decline in direct written premiums to post growth of 11% but, according to Fitch Ratings, there are some underwriting concerns brought on by developments with artificial intelligence.
Fitch said Anthropic’s Mythos model has raised eyebrows in the financial and cybersecurity worlds. In the short to medium term, vulnerabilities will probably outnumber patches as the artificial intelligence tool works on cyber threat intelligence and incident response.
Related: Anthropic Touts AI Cybersecurity Project With Big Tech Partners
“AI is particularly disruptive to cyber risk because traditional vulnerability analysis was labor-intensive and offered limited financial upside for researchers, a gap AI now fills at scale and speed,” said Fitch in its brief on the cyber marketplace on Feb. 15. “This lowers barriers for attackers, expands third-party risks, and could materially increase attack volume.”
Growth in the cyber market was mostly driven by volume, with policies-in-force up 35% to offset soft aggregate pricing. This, said Fitch, indicates a great awareness among buyers of cyber exposures, as well as a competitive underwriting environment. Larger companies are still more likely to have cyber insurance protection while smaller companies lag behind.
Yet, Fitch said, demand overall has “strengthened as boards and management teams recognize that cyber events can disrupt operations, trigger legal liabilities, and impair revenue even when direct financial losses are limited.”
Meanwhile, insurers have and will continue to assess and adjust contract language while integrating cybersecurity assessments into underwriting. Policy wordings related to war exclusions, silent cyber, business interruption, and contingent losses “will be critical,” added Fitch. A more detailed look at the cyber market is expected this summer, said the credit-rating agency.
Sullivan & Cromwell, a premier Wall Street law firm, apologized to a federal judge for submitting a court filing with inaccurate citations and other errors generated by artificial intelligence.
In a letter dated April 18, Andrew Dietderich, co-head of the firm’s global restructuring group, said the errors included AI “hallucinations” – instances in which AI makes up case citations, misquotes the law or generates non-existent legal sources.
The mistakes were caught by law firm Boies Schiller Flexner, Dietderich said in the letter to Martin Glenn, chief judge of the U.S. Bankruptcy Court in Manhattan.
“I apologize on behalf of our entire team. I also called Boies Schiller Flexner LLP on Friday to thank them for bringing this matter to our attention and to apologize directly to them as well,” Dietderich wrote.
Boies Schiller Flexner is also involved in the case.