European insurers continue to advance digitalization, but cyber risk remains a material strategic threat. According to EIOPA Q3 2025 and National Competent Authorities:
Overall risk: Medium
Outlook: Increasing
Supervisory concern: Elevated

CYBER RISK IN INSURANCE HAS A DUAL NATURE:
• Operational exposure: Direct threats to internal systems, data, and continuity. Increasing attack sophistication, remote operations, and legacy integration expand the attack surface.
• Underwriting exposure: Growth in cyber insurance portfolios introduces accumulation and correlation risk. A systemic event could simultaneously impair operations and trigger extensive claims.

KEY SUPERVISORY INDICATORS:
• Regulatory assessment: Probability and impact remain elevated, especially for cyber underwriting. 
• Market sentiment: Slight increase in negative sentiment among insurers in Q3 2025.
• Global threats: Frequency stable, but attack sophistication and persistence rising, including supply chain vulnerabilities.

IMPLICATIONS FOR RISK LEADERS:
• Integrate CISO, CRO, and Chief Underwriting Officer functions for unified exposure management.
• Embed DORA‑aligned reporting and resilience testing into risk frameworks.
• Incorporate scenario‑based solvency planning and data‑driven cyber underwriting monitoring.