This article is by Gavin Shilito, Cyber Underwriter at rrelentless
Cyber risk is now a familiar part of the business landscape, yet cyber insurance uptake among UK SMEs is widely reported to remain relatively low. This is despite increased awareness of cyber incidents and their potential operational impact.
The reasons behind this are complex. From an industry perspective, it does not appear that low uptake is driven by a lack of available policies alone. Instead, one factor that is often discussed is the role of understanding, both in how cyber risk is framed and how cyber insurance is explained within the advisory process.
For brokers, this presents an ongoing challenge. Cyber risk can be difficult to contextualise for clients who may not view themselves as likely targets, or who see cyber threats as technical issues rather than commercial ones. Where the purpose and scope of cyber insurance are not clearly understood, conversations may remain high-level, limiting engagement and confidence on both sides.
The broker’s role in translating cyber risk
Cyber risk differs from many traditional commercial risks. It is not always visible, and its consequences can be difficult for clients to visualise until an incident occurs. Reported figures suggest that a significant number of businesses experience some form of cyber incident each year, yet standalone cyber policies are still far from universal.
SMEs, in particular, may lack dedicated IT or security resources, which can make it harder for them to assess their exposure. In these circumstances, brokers play an important role in helping clients think through cyber risk in practical terms. This does not require deep technical expertise, but rather an ability to relate cyber incidents to familiar business concerns such as operational disruption, data loss, financial impact and reputational harm.
By focusing on how a cyber incident might affect day-to-day operations, brokers can help clients better understand why cyber risk is relevant to their business, without needing to rely on highly technical explanations.
Addressing common misconceptions
One misconception that can arise in cyber discussions is the belief that understanding cyber insurance requires specialist technical knowledge. In practice, many client conversations can be more effective when they centre on outcomes rather than technical detail.
Brokers do not necessarily need to position themselves as cybersecurity specialists. Instead, staying informed about common threat types, typical business impacts and the general structure of cyber policies can help support clearer, more confident discussions. Translating this information into plain language allows clients to engage more meaningfully with the subject and ask informed questions.
This approach can also help brokers reinforce their role as advisers, guiding clients through complex risks in a way that is proportionate to their business and risk profile.
Confidence as an enabler of better conversations
Broker confidence is often cited as an important factor in how cyber insurance is discussed and positioned. Where brokers feel less assured, cyber conversations may be deferred, simplified or avoided altogether, particularly when time pressures exist or clients appear hesitant.
Ongoing education and engagement can help address this. Understanding how cyber threats commonly affect different types of clients, and how cyber insurance is intended to respond, can make discussions more straightforward and structured. This, in turn, can support more consistent and balanced advice.
For SMEs, clearer conversations may help them better appreciate their exposure and consider how cyber insurance fits alongside other risk management measures.
Collaboration and knowledge-sharing
Across the market, collaboration across brokers, underwriters and cyber specialists is often seen as a way to support improved understanding. Training initiatives, workshops and shared resources can help demystify cyber insurance and provide brokers with practical frameworks for client discussions.
Such collaboration is not about promoting specific products, but about building a shared understanding of cyber risk and resilience. When brokers have access to clear information and educational support, they may feel better equipped to address client questions and concerns in an informed and measured way.
Keeping cyber on the agenda
As cyber risk continues to evolve, it is likely to remain a regular feature of commercial risk discussions. Brokers are well placed to ensure that cyber is considered alongside other core risks, rather than treated as a niche or exceptional issue.
By helping clients understand cyber risk in business terms, and by approaching cyber insurance as part of a broader risk conversation, brokers can support more informed decision-making. Over time, this focus on understanding and clarity may help narrow the gap between awareness of cyber risk and the steps businesses take to manage it.
AUTHOR NOTES
rrelentless is one of many providers of cyber insurance, and like most commercial insurance products, getting advice from an independent insurance intermediary is a great way to make setting up your insurance needs straightforward.
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