Ransomware and Cyber Insurance’s Evolving Role

November 10, 2025 – Published on Insurance Thought Leadership

Ransomware isn’t just another IT headache, according to Nate Spurrier, VP, Insurance and Counsel Strategy at GuidePoint Security. It has become one of the most disruptive business risks of the last decade, with the average ransom demand soaring to $2.7 million in 2024—nearly triple that of the previous year.

“As attacks escalate, cyber insurance has emerged as both a financial safety net and a source of controversy,” Spurrier writes. “Critics argue that guaranteed payouts fuel the ransomware economy, while insurers counter that they provide the expertise and resources companies desperately need to recover. So, is cyber insurance helping or hurting? The answer, as usual, is more complicated than it appears.”

“One of the biggest misconceptions about cyber insurance is that carriers simply cut a check when ransomware strikes. In reality, insurers are often the calmest (and most experienced) voice in the room. Backed by thousands of claims, they know when paying is the only path forward and when it’s a mistake. They bring in seasoned negotiators, navigate legal landmines, and keep the process grounded in facts rather than fear. For a company facing permanent data loss or days of costly downtime, that kind of expertise can be the difference between bouncing back and going under. Insurers also have a vested financial interest in the outcome, but their depth of experience allows them to make rational, non-emotional decisions when clients feel like the sky is falling.”

Despite its critical importance, cyber insurance purchasing decisions are often made without the full involvement of those best equipped to understand cyber risk. Too often, financial and legal teams drive procurement with limited input from CISOs and security teams.

Read more HERE.