AI Drives Cybersecurity Investments, Widening 'Valley of Death'

In a role reversal, investment dollars in security startups exceeded the value of mergers and acquisitions in 1Q26 by more than $1 billion, a rare occurrence.

Commercial risk teams are responding with tighter controls, scenario modeling, and broader collaboration across underwriting, claims, and cyber operations.

Leaders continue to prioritize resilience planning while balancing cost, coverage terms, and operational exposure in a changing market cycle.