As artificial intelligence (AI) continues to evolve, it's reshaping how businesses in Canada think about cyber threats. According to a recent Insurance Bureau of Canada survey, 65% of small and medium-sized business owners are worried that AI and other emerging technologies will make it harder to protect against cybercrime and with good reason. AI is giving cybercriminals the power to craft incredibly realistic phishing scams, fake emails, and fraudulent messages that are increasingly difficult to spot. Gone are the days of broken grammar and clunky phrasing; AI-generated attacks are polished, targeted, and believable. 

With these advancements, relying on employee intuition alone is no longer enough. Businesses must now adopt comprehensive cybersecurity protocols and ensure their cyber insurance coverage is up to date with the latest risks—especially those involving AI. 

Hacker in hoodie at laptop symbolizing AI-driven cyberattacks, with digital lock and email icons representing data breaches and phishing threats.What Cyber Insurance Can Do to Help 

AI-enhanced attacks are pushing insurance providers to evolve alongside the threat landscape. Criminals are using machine-learning tools to conduct faster, more convincing scams, and even to create deepfake videos and audio used in fraud and social engineering schemes. In response, Canadian insurers are updating policies and enhancing coverage to reflect these new realities. 

Here’s how cyber insurance is adapting to the AI era: 

  • Coverage for AI-Based Attacks: Some insurers are now including protection against deepfake fraud, AI-assisted phishing, and other high-tech threats in their cyber policies. 

  • Higher Cybersecurity Standards: To qualify for comprehensive cyber insurance, many providers are now requiring organizations to meet specific security benchmarks, including the use of multi-factor authentication, endpoint security software, and staff training programs. 

  • Advanced Response Services: Top-tier policies may include AI-powered monitoring tools, forensic investigations, and real-time threat detection services to help reduce the impact of a breach. 

  • Regulatory Compliance Support: As privacy regulations continue to change—like Quebec’s Law 25—many cyber insurance providers are offering tools and guidance to help businesses stay compliant and safeguard sensitive data. 

How Your Business Can Stay Ahead of AI-Powered Threats 

Protecting your business from cybercrime driven by AI means taking a proactive, layered approach. Here are a few practical steps to strengthen your defences: 

  • Enable Multi-Factor Authentication (MFA) 

MFA is a simple but powerful security tool that requires users to verify their identity in more than one way, significantly reducing the risk of unauthorized access. 

  • Keep Up with Cyber Trends 

AI is constantly changing the threat landscape. Stay informed by subscribing to cybersecurity bulletins, attending webinars, or working with a knowledgeable broker. 

  • Invest in Ongoing Employee Training 

Modern phishing attempts often look and feel legitimate. Regular training helps staff recognize the signs of a scam, even the more sophisticated ones. 

  • Adopt AI-Driven Security Tools 

Just as cybercriminals use AI, so can you. Tools that use machine learning to detect abnormal activity in real time can help neutralize threats before they cause damage. 

  • Work with a Trusted Insurance Broker  

Cyber threats evolve quickly, and your insurance coverage should too. Speak with your Sutherland Insurance broker to ensure your policy keeps pace with the latest AI-driven risks. We’re here to help tailor coverage that meets your business’s unique needs and helps you stay resilient in the face of emerging challenges. 

  • Be Prepared—Not Surprised  

Cybersecurity is no longer just an IT issue, it’s a business imperative. With AI changing the game, the right cyber insurance policy can be a critical part of your defence strategy. Sutherland Insurance is here to help you navigate this new landscape and secure your business against today’s most sophisticated digital threats. 

At Sutherland Insurance, a proud member of the Canadian Broker Network (CBN), we stay ahead of emerging risks such as AI-driven cyber threats to better serve our clients. 

The content provided in this article is for general informational purposes only and does not constitute professional advice.

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