Cyber insurance providers paid out nearly £200 million in claims last year, helping UK businesses recover from a surge in cyberattacks that disrupted operations and exposed critical vulnerabilities across sectors.
New figures show that £197 million was paid out in 2024, marking a 230 percent increase compared to the previous year. The sharp rise reflects the growing scale and sophistication of digital threats, with malware and ransomware alone accounting for over half of all claims. This is a significant jump from 32 percent the year before, underscoring how damaging these attacks have become.
The data also reveals a shift in business behaviour. Demand for cyber insurance surged, with 17 percent more policies taken out than in 2023. This suggests that UK firms are increasingly recognising the need to protect themselves against evolving digital risks, not just through reactive measures but proactive resilience planning.
Cyber insurance is proving to be more than just a financial safety net. The right policies are helping businesses recover from incidents, while also offering access to expert advice, threat monitoring, and incident response support. As attacks grow in frequency and impact, insurance is becoming a vital part of modern risk management.
The figures were drawn from a sample of participating insurers and reflect a growing reliance on cyber cover to mitigate operational disruption, reputational damage, and financial loss. While not extrapolated to the full market, the trend is clear — cyber resilience is now a boardroom priority.
This surge in claims and policy uptake highlights the urgent need for businesses of all sizes to assess their exposure and ensure they have adequate protection in place. In today’s digital economy, cyber insurance is no longer optional. It’s essential.