UK Cyber Insurance Market

UK Cyber Insurance Market Overview:

The UK cyber insurance market size reached USD 614.56 Million in 2023. Looking forward, IMARC Group expects the market to reach USD 2467.19 Million by 2032, exhibiting a growth rate (CAGR) of 15.60% during 2024-2032. The increasing cyber threats, regulatory requirements including GDPR, rising costs of data breaches, growing awareness of cybersecurity risks, digital transformation, remote work trends, and the expansion of cloud services are some of the major factors propelling the market growth.

UK Cyber Insurance Market Trends:

Increasing Cyber Threats

A rise in cyberattacks like ransomware and data breaches has heightened the need of and the demand for insurance protection. According to industry reports, in 2024, more than 400,000 fraud and computer misuse cases were recorded across the UK. Phishing scams were the most common type of cyber-attack in the UK, experienced in 84% of all incidents. The UK was the second-most targeted country in the world for cyber-attacks, after the US. The average cost of a cyber-attack to a UK business was £10,830. 50% of UK businesses have been a victim of cybercrime. UK cybercrime costs the economy an estimated £27 billion per year. UK businesses take an average of 38 days to identify a cyber-attack and 43 days to recover fully. Ransomware attacks in the UK increased by 70%. 25% of UK consumers believe they will fall victim to cybercrime in the future. Furthermore, in May 2024, Britain’s Ministry of Defence was the target of a large-scale cyberattack, a government minister confirmed to British media. It targeted a third-party payroll system used by the Defence Ministry and included the names and bank details of current and former service personnel of the armed forces. These statistics reflect the imminent need for efficient measures to cope with the losses due to cyber-attacks and also prevent future attacks.

Rising Regulatory Compliance

Stricter regulations, such as GDPR, compel businesses to mitigate data breach risks, driving the need for cyber insurance coverage. For instance, in April 2024, consumer protections against hacking and cyber-attacks came into force, as all internet-connected smart devices will be required by law to meet minimum security standards. Manufacturers will be legally required to protect consumers from hackers and cyber criminals from accessing devices with internet or network connectivity - from smartphones to game consoles and connected fridges - as the UK becomes the first country in the world to introduce these laws. Under the new regime, manufacturers will be banned from having weak, easily guessable default passwords like ‘admin’ or ‘12345’ and if there is a common password the user will be prompted to change it on start-up. This will help prevent threats like the damaging Mirai attack in 2016 which witnessed 300,000 smart products compromised due to weak security features and used to attack major internet platforms and services, leaving much of the US East Coast without internet. Since then, similar attacks have occurred on UK banks including Lloyds and RBS leading to disruption to customers.

 UK Cyber Insurance Market News:

• In May 2024, Howden announced the launch of a unique cyber insurance platform for SMEs that lowers one of the key barriers to them accessing cyber insurance by simplifying the process of purchasing cover. Designed for businesses with revenues of up to USD 250m, cyber insurance can be purchased in four simple steps directly through the platform, with no lengthy questionnaires or complex terminology used to get a quote.
• In April 2024, Coalition launched its active cyber insurance offering on Acturis’ NOW platform. The insurance provider made the move to allow more brokers to quote and bind with Coalition, helping them protect more small and medium enterprises (SMEs) from cyber threats as a result.

UK Cyber Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on component, insurance type, organization size, and end use industry.

Component Insights:

• Solution
• Services
   

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.

Insurance Type Insights:

• Packaged
• Stand-alone
   

A detailed breakup and analysis of the market based on the insurance type have also been provided in the report. This includes packaged and stand-alone.

Organization Size Insights:

• Small and Medium Enterprises
• Large Enterprises
   

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes small and medium enterprises-organization size and large enterprises.

End Use Industry Insights:

• BFSI
• Healthcare
• IT and Telecom
• Retail
• Others
   

A detailed breakup and analysis of the market based on the end use industry have also been provided in the report. This includes BFSI, healthcare, IT and telecom, retail, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Cyber Insurance Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK cyber insurance market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK cyber insurance market?
• What is the breakup of the UK cyber insurance market on the basis of component?
• What is the breakup of the UK cyber insurance market on the basis of insurance type?
• What is the breakup of the UK cyber insurance market on the basis of organization size?
• What is the breakup of the UK cyber insurance market on the basis of end use industry?
• What are the various stages in the value chain of the UK cyber insurance market? 
• What are the key driving factors and challenges in the UK cyber insurance?
• What is the structure of the UK cyber insurance market and who are the key players?
• What is the degree of competition in the UK cyber insurance market? 

 Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK cyber insurance market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK cyber insurance market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK cyber insurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.