We need more training at every level on cyber, phishing, fake ID, AI videos and more. No business can leave it to the IT dept anymore. Here’s the word;
The ABI has called for cyber insurance to become a part of every organisation’s modern risk management strategy, as its latest figures show £197 million was paid out to help businesses recover from cyber incidents in 2024.
Data from firms participating in the ABI’s cyber data collection revealed a 230% year-on-year increase in the amount paid out to support businesses with cyber-attacks, £138 million more than in 2023.
Malware and ransomware alone accounted for over half (51%) of all claims. This is up from a total of 32% of all claims in 2023, highlighting how increasingly sophisticated digital threats are causing more extensive damage, leading to higher payouts. It also underscores the critical support insurance provides when such attacks halt business operations.
Cyber insurance is proving to be indispensable in today’s digital economy, protecting businesses from costly breaches, ransomware, and email compromise while actively helping them prevent attacks and boost resilience. With cyber threats escalating, demand for protection surged in 2024. 17% more policies were taken out than the previous year, presenting clear evidence that UK businesses are prioritising protection against evolving digital risks.
Jonathan Fong, Head of General Insurance Policy at the ABI, said:
“Cyber insurance is more than just a financial safety net. The right policy not only supports businesses in the aftermath of an incident but can also help prevent attacks through access to expert advice, threat monitoring, and incident response planning. With cyber threats continuing to grow in scale and sophistication, it needs to be a critical component of every organisation’s modern risk management strategy.”
INDUSTRY COMMENT
Warren O’Driscoll, Head of Security Practice at NTT DATA UK&I, said:
“The fact that UK cyber insurance claims tripled in 2024 is in many ways down to a perfect storm of overlapping factors. As highlighted in the recent documented briefing by MI5, there are rising geopolitical threats. It’s increasingly easy for threat actors to exploit vulnerabilities: we’ve witnessed, for example, the industrialisation of ransomware services and the leveraging of AI within phishing & social engineering. On top of that, we’ve seen numerous vulnerabilities generated by complex supply chains and the procurement-driven need to push for low-cost solutions and services: with heavy use of offshore functions, data access and visibility often cannot be easily verified.
“Cloud-first architectures have offered advantages in cost, speed and information sharing, and also created altered risk management profiles, but this has meant a loss of full visibility of where, when and who can access data. Where sensitive or critical data and functions are operated overseas, sovereignty has become a security and resilience issue. And in the event of a breach, it’s more difficult for our government to support recovery and repair among UK enterprises when the damage has occurred overseas.
“For insurers and the insured, ramping up insurance premiums cannot be the answer. The solutions instead lie in improved UK regulations, and in better support for insured organisations to strengthen their cyber security maturity. So the insurance market has to reckon with the changing risks profiles in a more dynamic way: to develop a better understanding of their clients’ operational and resilience risks, as well as the quality and location of their supply chain services and solutions. If we do not act, today’s £197 million in payouts will prove to be only a down payment on a much more volatile and expensive period of cyber risks.”
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