Trump-era tariffs have intensified supply chain disruptions, hitting mid-market businesses hard. Insurers are pulling key services in-house to regain control and turning to AI to streamline operations to mitigate losses.
But supply chain instability isn’t just about delays - it’s a domino effect. While tariffs remain one of the biggest challenges for mid-market businesses, the growing threat of cyberattacks and digital vulnerabilities is adding another layer of complexity.
Cyberattacks have emerged as a growing threat to supply chain stability. In 2023, supply chain-related disruptions led to an average of $82 million in annual losses per organization in key industries, including financial services, aerospace, defense, healthcare and energy.
Evolving risks are forcing insurers to rethink their approach, balancing supply chain disruptions with the increasing need for cybersecurity protections. Staying ahead requires constant adaptation, ensuring both businesses and insurers can navigate what’s coming next, according to Alyson Paisley, deputy senior vice president of commercial lines and prestige at Intact Insurance.
With an increasing reliance on digital operations, businesses face heightened exposure to cyberattacks, data breaches and ransomware. In 2023, there were 2,365 cyberattacks affecting approximately 343 million individuals, marking a 72% increase in data breaches compared to 2021.
In response, insurers are strengthening cybersecurity offerings and risk mitigation strategies to help clients navigate these emerging threats.
The cyber insurance market has experienced significant growth, with premiums reaching $14 billion in 2024 and projections indicating a potential doubling by 2027. This growth reflects the increasing demand for financial protection against cyber threats and the critical role insurers play in supporting organizations' cybersecurity efforts, according to the Financial Times.
“Everybody's talking about cyber threat right now,” Paisley said. “Knowing that's an emerging threat for our consumers, particularly in the commercial line space is why we’ve partnered with an MGA called Reliance.”
At the same time, supply chain issues continue to pose challenges for businesses. Insurers are also affected by these disruptions and have had to rethink their own processes to maintain service reliability. Some have chosen to provide key services in-house to better manage these risks.
“Similar to our customers having supply chain management concerns, we too have risks that we need to manage, and it's why we've brought a lot of our services and processes in-house to control that experience for our customers,” she said. “[It’s] so that we really have the ability to ensure that we're able to respond in a time of uncertainty.”
Insurance isn’t just about policies—it’s about risk mitigation. Businesses need more than coverage; they need strategies to prevent losses before they happen. Now more than ever, staying ahead of risk is essential.
“We do have a team that's dedicated to providing risk mitigation and prevention consultation to our brokers and customers. And then, of course, it's our underwriting expertise,” Paisley said.
Mid-market businesses require more specialized expertise. With growing complexity, insurers are shifting towards industry-specific solutions. Intact has developed 23 specialty verticals to provide deeper knowledge where it's needed most.
“We've got 23 verticals where we have specialized ability. We're consultants in areas that are more complex and need that sort of niche experience and expertise,” Paisley said. “Mid-market, we are generalists, but I think what our advantage is, is we are really good at segmentation.”
Rather than attempting to build internal expertise in every emerging risk area, insurers are increasingly turning to specialized partners to fill the gaps. The pace at which new risks—such as artificial intelligence-driven cyber threats and climate-related disasters—are emerging means that collaboration is often the most effective approach.
