The JLR Cyber Attack Highlights The `Uninsurable’ Risks in Modern Economies

UPDATE 28.09.2025

GOVT BECOMES INSURER OF LAST RESORT ON CYBER

In a move that is bound to please large companies the UK Govt announced it would loan JLR £1.5bn over 5 years to cope with the fall out over the recent ransom/hack. Good news for the JLR supplier chain, good news for large corporations who now know that if enough jobs or infrastructure is affected a bailout from the taxpayer is on the cards. 

Not good for SMEs of course, not good for taxpayers either as you can bet that IT contractors/companies tasked with installing new systems, platforms, security firewalls or retrieving data, will see this as an opportunity to charge top dollar for a legacy system overhaul, or full replacement.

It also raises the intriguing question re digital ID; if that is frozen in a Denial of Service incident, does the government have to compensate 1 million citizens for being “non-persona” for a few months and losing their jobs, right to drive, travel, get NHS treatment, buy things etc?

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It’s a battlefield out there in cyberspace and the ransom gangs and activist hackers are winning. The JLR attack which has halted production and undoubtedly cost the car maker millions, is just the latest in a long line of attacks against large companies and public sector departments. But the latest revelations from Insurance Times, as quoted by Sky News, that JLR wasn’t even insured, suggests that underwriters are taking a more cautious view on coverage for multi-national companies where the supplier chain is huge. 

Why does it matter that there are over 2000 suppliers for one big company like M&S, the Co-op or Jaguar Land-Rover? Simple really, it means thousands of emails every day within that supply chain, many with attachments like product photos, invoices etc. Anyone can try their luck automating various spoof invoices with attachments, and it just takes one lucky strike to get through…boom, you are looking at losing £80m like the Co-op did.

Reportedly M&S DID have cyber cover for their huge potential £300m losses. Maybe so. But both human underwriters and AI can see where all this going; big losses for insurers who cover big brands. Cyber attackers are not going to stop, especially if a few public sector bodies or companies cough up some Bitcoin to get things online again. Fact is, every system, each platform, is vulnerable precisely because it pulls in millions of pieces of data, connects thousands of devices and automates decision-making on a daily basis when it comes to admin tasks. There is no manual security processing you can do to replace all that, it really is modern business, written in code.

IE predicts cyber rates will rise after a relatively soft market recently. More exclusions, maybe payout caps too, depending on the sector. Manufacturing is an area where costs multiply exponentially each day, we might see similar scenarios in distribution too. Moving parcel/food distribution to all electric fleets opens the door for cyber attackers, even if it meets Net Zero targets.

Here’s some thoughts from Bionic for you;

Laura Court-Jones, member of Bionic’s business insurance team, comments: “Hackers will target anyone they can and small businesses are often easy prey due to weaker security systems. Without robust defences, it’s much easier for cybercriminals to access sensitive information.

“To reduce the risk of an attack, it’s essential to invest in preventative measures such as regular software updates, installing firewalls and anti-virus applications and ensuring there’s available cybersecurity training for employees. While cyber insurance may help protect your business after an incident, these proactive steps are your first line of defence.

“That said, any business storing data digitally or using cloud-based systems should consider cyber insurance. Whether you run a warehouse, a cafe, or anything in between, it’s essential to take steps to help protect your operations and maintain the trust of your customers.

“Cyber insurance can act as a digital safety net, offering protection before, during, and after an attack. Policies will vary per provider, and terms and conditions apply, so always check the small print in your policy wording to see what’s included and excluded. Cyber insurance may include:

• Pre-incident support – Including risk assessments, cybersecurity training, and expert advice to help prevent cyber threats before they occur.

• Post-incident support -Assisting with crisis management, legal guidance, and technical investigation after a cyberattack.

• Cyber extortion – Covering ransom payments (if chosen), negotiation services, and investigations in cases of ransomware or DDoS threats.

• Damage to digital assets – Helping repair or replace corrupted or lost data, software, or digital infrastructure following an attack.

• Security and privacy breaches – Covering the costs associated with data breaches, including legal fees, customer notification, and PR support to manage reputational damage.”

RESILIENCE HAS TO BE BUILT INTO SYSTEMS

Some thoughts from Tom Egglestone, Director of International Claims at Resilience;

“Jaguar Land Rover’s situation illustrates the scale of cyber risk, even for mature organisations, and highlights the financial exposure faced by those without robust cyber insurance. While businesses may believe they can self-insure or rely purely on internal controls, this underestimates the scale and frequency of today’s cyber threats. Without cover, they may be left to absorb the full cost of an incident, from forensic work and remediation to significant business interruption losses, at a time when both the severity and impact of attacks are rising.

For organisations of all sizes, cyber insurance serves as more than just a financial backstop; it is a tool that can support them in preparedness and resilience, while providing a safety net if controls do fail. It should be incorporated from the very beginning as a core element of any incident response or business continuity plan. Cyber insurance is no longer just about risk transfer; it provides access to specialist response teams and recovery support that can make the difference between a contained incident and a prolonged, costly recovery. The takeaway for all businesses is clear. Cyber insurance is essential to ensure continuity, protect supply chains and safeguard long-term viability.”

Resilience is a leading cyber security solutions firm which operates globally. They are committed to highlighting the latent risks in today’s cyberthreat landscape and have recently released a risk report for the first half of 2025, which you can find here.