Generative AI and cyber protection: lines of action for the insurance industry

Artificial Intelligence (AI) has been making its way into our professional and personal lives for decades, helping to transform the world we live in. Generative AI promises to follow the same path with a much higher rate of technological development and social and business adoption.

This innovation is being quickly adopted due to its ease of use and the astonishing quality, speed, and versatility of its results. One of its main advantages is accessibility: anyone with a computer, smartphone or tablet with an Internet connection can use very powerful tools; that isn't the case with other technologies, whose most advanced applications are limited to «experts».

This adds a new dimension regarding cybersecurity. On the one hand, it equips attackers with the tools to bypass corporate defenses. On the other hand, companies themselves can leverage it to strengthen their defenses.

The versatility of generative AI means its impact depends on how its applied. The technology can be used to create undetectable malware, generate deepfakes for cyberbullying, carry out natural-language phishing attacks, impersonate identities, and more. Its widespread adoption also heightens the potential for sensitive data breaches. With a growing number of users integrating generative AI into their daily activities—a trend expected to continue—prioritizing protection is vital.

And the insurance industry has a critical role to play in this context. First, like all economic sectors, it must adopt strong cybersecurity measures to prevent attacks, safeguarding business, customers and information. Second, as a key partner in various aspects of people’s lives, it must innovate by developing new cyber protection products and services. These solutions should not only help mitigate the impact of cyberattacks but also support customers in proactive prevention efforts.

The MAPFRE report Exploring tomorrow: The role of insurers in a society shaped by generative AI outlines four potential scenarios regarding the impact of this innovation on cybersecurity, driven by widespread use in society. While these scenarios depict extreme realities, they’re pinpointing key trends that are likely to shape the sector’s evolution by the end of this decade.

The report emphasizes the importance of adopting a proactive and collaborative approach to address the challenges posed by generative AI. Insurance companies should focus on three main lines of action:

1. Strengthening AI-powered defense systems capable not only of reacting to attacks but also anticipating and preventing them.
2. Educating and raising awareness among customers about the role of cybersecurity in their daily operations.
3. Developing new products and services that address emerging risks, such as insurance policies with specific clauses designed to mitigate the impact of attacks using generative AI tools.

Collaboration is a vital cornerstone for ensuring the best possible future.

At MAPFRE, we’ve demonstrated this strategy through our partnerships with startups like Cyberwrite. This union has allowed us to develop personalized solutions that help businesses, particularly SMEs, better understand and manage their risks more efficiently.

Specifically, Cyberwrite provides MAPFRE with a platform to assess cyber risk in small and medium-sized enterprises, enabling a more accurate understanding of the risk during both underwriting and cyber insurance renewals. With these insights, MAPFRE can determine the risk level of each SME, helping them address vulnerabilities or adjust their cyber insurance policies to ensure the best possible protection.

“For SMEs, a cyberattack can be devastating; at MAPFRE, we aim to support these companies in their cyber protection strategy and minimize the impact of risks on their business. With on-demand access to these analyses, we can better understand the specific risks faced by each company and offer products and services tailored to their real needs,” says Óscar Taboada, Head of Underwriting Europe & Head of Cyber at MAPFRE RE. “This project represents a significant step forward in the assessment, monitoring and management of cyber risk, providing valuable insights that help our teams make well-informed decisions,” he adds.

The rise of generative AI presents an unprecedented challenge to data and system security, given the increasing sophistication of cyberattacks. This potential for deception is not limited to criminal organizations but is becoming accessible to individuals as well.

As a result, businesses will seek enhanced protection through insurance with tailored coverage and services designed to prevent, detect, respond to, and recover from cyberattacks. At the same time, individuals will demand more security-focused products and services that safeguard all members of the family. In this context, raising awareness and providing education on the responsible use of technology will be critical in addressing the growing threat of new cyberattacks.

In more extreme scenarios, generative AI could enable the creation of highly personalized digital assets, such as virtual assistants providing hyper-personalized services, or digital identities (e.g., virtual pets) with substantial value to their owners. This shift could fuel demand for products and services specifically designed to protect these assets, including measures to secure vulnerabilities, prevent manipulation and fraud, as well as insurance against theft or destruction. 

Preparing for the future is not only about business survival—it also represents an opportunity to lead in a society increasingly defined by digital transformation. In a world where cybersecurity and cyber protection are fundamental, insurers play a crucial role in ensuring stability and trust in both the markets and their customers.

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