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Home»Finance»UK brokers expect strong growth in cyber insurance as business risks escalate
Finance

UK brokers expect strong growth in cyber insurance as business risks escalate

May 27, 2025No Comments3 Mins Read
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UK brokers expect strong growth in cyber insurance as business risks escalate
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A GlobalData survey has discovered that greater than half of UK industrial brokers consider cyber insurance coverage is the product that has essentially the most progress potential within the industrial insurance coverage trade. This displays rising consciousness of cyber threats and heightened threat perceptions amongst companies, each of that are driving demand—although adoption of cyber cowl will not be but common.

In accordance with GlobalData’s 2025 UK Business Insurance coverage Dealer Survey, cyber insurance coverage stands out because the product with the best potential for progress. Greater than half of the brokers surveyed (53.6%) chosen it as essentially the most promising rising product, properly forward of different areas comparable to renewable vitality insurance coverage (8.8%) and canopy for AI-related liabilities (7.6%). The dimensions of this hole suggests the market sees cyber threats as a key space the place insurance coverage demand will rise sharply. This rising demand is being additional fuelled by heightened consciousness amongst companies and the frequent reporting of cyberattacks within the media.

Source: GlobalData’s 2025 UK Commercial Insurance Broker Survey.
Supply: GlobalData’s 2025 UK Business Insurance coverage Dealer Survey.

GlobalData’s findings are backed by current information from QBE Insurance coverage Group. Its 2024 report confirmed that the variety of cyberattacks greater than doubled in comparison with the 12 months earlier than, rising by 104%. It additionally discovered that a big majority of IT resolution makers (78%) have been fearful in regards to the cyber threats dealing with their organisations within the 12 months forward. These findings echo sentiments from brokers and level to a rising sense of urgency amongst companies to strengthen their digital threat administration.

Regardless of this, many companies nonetheless haven’t taken out cyber insurance coverage. Whereas consciousness is clearly growing, this has not but translated into widespread adoption. GlobalData’s 2025 UK SME Insurance coverage Survey discovered that simply 40.2% of small- and medium-sized enterprises (SMEs) have cyber insurance coverage. This hole between concern and motion represents a significant alternative for brokers, notably within the SME area. Smaller corporations are sometimes extra weak to assault however have fewer assets to reply successfully, making them sturdy candidates for tailor-made cowl.

If uptake is to develop, insurers might want to concentrate on making merchandise simpler to know and extra related to various kinds of companies. There stays confusion round what cyber insurance coverage truly covers, particularly on the subject of conditions comparable to downtime, information breaches, and regulatory penalties. Constructing clearer insurance policies and providing simple recommendation may very well be key to serving to extra corporations really feel assured in taking out safety.

“UK brokers anticipate sturdy progress in cyber insurance coverage as enterprise dangers escalate” was initially created and printed by Life Insurance coverage Worldwide, a GlobalData owned model.

 


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