Let’s dive deep into cyber risks for 2026, with this piece from Matt Rider, Global VP of Customer Technical Support at Exabeam, who is a global cybersecurity leader and keynote speaker with 25+ years’ experience at Microsoft, Sophos, and Rapid7. He specialises in AI-driven threat detection, SOC transformation, and inspiring the next generation of cyber defenders.
In 2025, threat actors pivoted cyberattacks to not only disrupt operations for financial gain but to double down on public exposure as a weapon. Cyber incidents across retail, manufacturing and healthcare have all led to major discussions about how the UK can become more cyber resilient in 2026. This has direct implications for cyber insurance, as business interruption and systemic disruption emerge as critical risks.
The challenge is that the impact of these attacks extends well beyond the initial breach. As witnessed in the Jaguar Land Rover attack, production came to a halt with all operations paused for weeks. With nearly half of UK businesses experiencing a cyber breach or attack in the past year, according to the UK Government, cyberattacks are increasingly becoming a matter of ‘when’ not ‘if’.
What’s crucial for 2026 is recognising cyber insurance as part of the broader risk strategy and understanding how it may tighten as the threat landscape evolves.
Here are my predictions for cybersecurity trends that UK organisations must pay attention to in 2026:
· Prediction 1: A Major AI Cyber Attack Could Redefine Cyber Risk
In 2026, the UK may experience a cybersecurity incident that matches the scale seen in the 2020 SolarWinds attack. Supply chain infiltration, malicious poisoning or corruption could lead to a major AI chatbot generating widespread malicious outputs.
Anticipation of this will rise, accelerating demand for cyber insurance. AI-driven models leveraged for day-to-day operations leave a wider attack surface for threat actors, acting as a catalyst for a global supply chain catastrophe. Regulations coming into force like the EU AI Act and Cyber Action Plan in the UK will begin to outline how organisations can prevent this occurring and define controls to strengthen operations.
· Prediction 2: Cyber Resilience Emerges as a Differentiator for Consumer Brands
Cyber resilience will become a defining requirement for retailers, banks, telcos and public sector organisations in 2026. 2025 was a prime representation of why cyber resilience is so important. Fraudsters were ruthless in attacks, halting production lines,
stealing customer information and bringing disruption into public view. As customers expect increasing transparency into data storage, we’ll start to see a new era of cyber resilience contributing to brand trust and market share. Key customer-serving sectors will actively promote uptime, recovery speed and data protection as part of their value proposition.
Much like environmental or ethical credentials became competitive advantages, resilience metrics will evolve into marketing assets to influence consumers. Cyber insurance will play a supporting role in this shift, reinforcing the importance of measurable controls, incident readiness, and recovery capabilities.
· Prediction 3: A Close Call on Critical Infrastructure Will Reshape Safety Regulations
Digital touchpoints ranging from electric vehicle (EV) chargers, smart buildings, and digitalised medical devices are becoming more integrated into everyday life. 2026 will be the year to majorly strengthen connected systems in anticipation of a critical infrastructure attack.
Threat actors could potentially hack EV chargers, creating a surge in the national grid while also maliciously exploiting hospital equipment or insecure Internet of Things (IoT) devices. Not only do organisations need to be prepared for this sort of digitally enhanced attack but they also require robust insurance to reduce the financial impact and real-world harm this could cause to the public.
An event like this would prompt new safety regulations for connected infrastructure from the government. Insurance will be especially vital here when threat actors use this disruption to benefit financially.
· Prediction 4: Stricter Cyber Insurance Meets Steady Security Spending
2026 will mark the end of questionnaire-driven cyber insurance. Insurers, pressured by escalating payouts and increased critical infrastructure attacks, will require audit-level proof of organisational security methods. Multi-factor authentication, privileged access governance, backup testing, and AI agent monitoring will be a necessity for increased insurance. These methods will drive consumer trust, act as a competitive marketing asset and lead strategic decision-making for C-suite executives. Those organisations lacking in verifiable cyber hygiene will experience higher insurance premiums.
This tightening of cyber insurance will come at a time when spending remains resilient in the face of challenging macroeconomic conditions. Economic pressure will push down some budgets while rising geopolitical tension will increase risk. This will result in a net effect that keeps overall security spending consistent.
· Prediction 5: Identity-First Security Will Transform AI Automation
In 2026, the rapid expansion of identity-first security beyond users and devices to machine identities, APIs and AI agents will fundamentally change organisational risk profiles. As organisations automate workflows and delegate tasks to AI chatbots and autonomous agents, insurers must also assess and price this new risk surface.
Securing these AI identities is uniquely challenging and requires a different approach than human users. If poorly governed, AI identities can misuse privileges or be misconfigured without detection, causing financial losses, reputational harm, and the erosion of consumer trust.
With this, insurers will place growing emphasis on an organisation’s ability to deploy unified identity governance, including tracking, validating, and revoking permissions across users and AI entities. Organisations that fail to modernise their identity stack will not only face dangerous visibility gaps, but heightened exposure to claims, coverage limitations and rising premiums as insurers scrutinise how these risks are controlled.
New Year, Stronger Security Strategies
In 2026, UK organisations must implement stronger regulations and explore broader adoption of risk management practices, including cyber insurance. Proactive detection and response to AI-powered cyberattacks will be essential to this, alongside strengthening the security of connected systems and educating employees in spotting sophisticated social engineering tactics.
As we look ahead, regulation, insurance and proactive defence will reshape the UK’s cybersecurity landscape as we currently know it. Organisations must strategise and redefine what proactive security looks like in 2026, ensuring resilience is built into every part of their business operations.
Be the first to comment