How supply chain risk can affect cyber insurance

This report analyzes the growing focus of cyber insurers on software supply chain and third-party risks, noting today’s soft market could harden rapidly after systemic events. Insurers are shifting toward evidence-based underwriting that demands verifiable visibility into digital dependencies (e.g., telemetry, SBOMs, binary analysis) and may introduce exclusions or higher premiums for using “risky” vendors or components. It highlights the implications for cyber and contingent business-interruption coverage, emphasizing the need for complete tech stack mapping and stronger controls to manage accumulation risk and ensure insurability.