Why UK businesses without cyber insurance can’t afford to wait

Why UK businesses without cyber insurance can’t afford to wait

Many UK businesses still believe cyber insurance is unnecessary. Some trust their cybersecurity controls; others are still building their defences and prefer to invest in technology rather than insurance. 

But 2025 is proving to be a watershed year for cyber risk, and those without a policy are leaving themselves dangerously exposed to financial, operational, and reputational damage. Here are five critical trends that make cyber insurance an incredibly powerful tool for your business.

1. A buyer’s market for cyber insurance

The UK cyber insurance market is more accessible than ever. Premiums dropped another 7% in early 2025, driven by intense competition among insurers. Coverage is broader, and many policies now include proactive risk management services, often at no extra cost.

Globally, the market has grown 284% since 2017 and is projected to grow another 112% by 2030. This is a sign that cyber insurance is becoming a go-to strategy for business resilience. For UK firms, there’s rarely been a better time to explore affordable, high-value protection.

2. Regulation is raising the stakes

Cyber risk is no longer just an IT issue – it’s a governance priority. The UK Cyber Security and Resilience Bill, alongside European regulations like NIS2 and DORA, is placing clear responsibility on senior leadership to manage cyber threats.

Failure to prepare can lead to regulatory penalties, reputational damage, and shareholder scrutiny. Having cyber insurance in place demonstrates strong governance and provides a financial safety net when things go wrong.

3. AI: Empowering both innovation and attackers

Generative AI is now a double-edged sword. While UK organisations are using it to boost productivity through AI chatbots, automated content creation, and customer service tools, criminals are using the same technology to launch more convincing and dangerous attacks.

Phishing emails now mimic real communication styles and deepfake videos are being used in an attempt to steal credentials. In mid-2025, cybersecurity firm Anthropic reported that threat actors had used its AI coding assistant, Claude Code, to orchestrate fully autonomous ransomware attacks and according to CyberCheck Labs, the UK saw a 170% increase in deepfake vishing attacks in Q2 2025.

Even businesses with robust cybersecurity training programmes are vulnerable. AI-generated attacks are harder to detect, and the risks of data leakage, impersonation, and credential theft are rising fast. Cyber insurance offers a vital backstop when these new threats slip through the net.

4. Supply chain resilience is critical

Recent events have shown how vulnerable supply chains can be. In July 2024, CrowdStrike released a faulty update that crashed 8.5 million Windows systems worldwide, significantly impacting aviation, banking, healthcare, and emergency services. The global financial impact exceeded $10 billion. These incidents prove that even non-malicious cyber events can have catastrophic consequences.

The August 2025 attack on Jaguar Land Rover, which was claimed by the same threat actors who exploited M&S, not only impacted JLR but also its suppliers. It is reported that the attack will have a major impact on JLR’s key suppliers, since vehicle component parts are not required whilst production is halted. This raises questions about the need for supply companies to protect themselves from the financial fallout of cyber-attacks directed at their customers.

5. Human error remains the weakest link

Despite all the headlines about ransomware, most breaches still begin with a simple mistake – an employee clicking a malicious link, using a weak password, or misdirecting sensitive data. No amount of training can eliminate human error entirely.

Cyber insurance doesn’t discriminate against human error. Whether it’s a breach using stolen credentials or the leak of sensitive data by an employee, it provides financial protection and expert support when you need it most.

Why This Matters to You

Cyber risk is now a boardroom issue with real financial consequences. Without cyber insurance, your business could be one incident away from a disruption that threatens its future. The insurance market is ready, the product is strong, and the risks are growing—now is the time to act.

Reach out to your Howden representative now to discuss how our Cyber specialists can help support you through your cyber risk journey.