Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 1.53 Billion |
Market Size (2030) | USD 2.87 Billion |
CAGR (2025 - 2030) | 13.40 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
UK Cyber Insurance Market Analysis
The UK Cyber Insurance Market size in terms of premium value is expected to grow from USD 1.53 billion in 2025 to USD 2.87 billion by 2030, at a CAGR of 13.4% during the forecast period (2025-2030).
The UK cyber insurance landscape has undergone a significant transformation, evolving beyond traditional risk mitigation to accommodate the changing nature of cyber threats. Insurance firms now provide comprehensive services throughout the contract period, moving away from the conventional claim-only model to offer proactive cyber risk management solutions. According to recent data from UK IT Governance, over 8 billion records were compromised across United Kingdom organizations in 2023, highlighting the critical need for robust cybersecurity liability protection. This evolution has led to the emergence of specialized insurance products that address both daily operational risks and extreme scenario events, reflecting the industry's adaptation to the complex digital threat landscape.
The severity and sophistication of cyber threats continue to reshape the insurance sector's approach to risk assessment and coverage. Recent findings from the Cyber Security Breaches Survey 2024 reveal that approximately 50% of businesses and 32% of charities experienced cyber breaches and attacks in 2024, demonstrating the pervasive nature of cyber threats across sectors. The insurance industry has responded by developing more nuanced underwriting criteria and risk assessment methodologies. Insurers are increasingly partnering with cybersecurity firms to enhance their cyber incident response capabilities and provide clients with proactive security measures, marking a shift from reactive coverage to preventive protection.
The market has witnessed a notable shift in the types and frequency of cyber attacks, with phishing emerging as the predominant threat. According to recent statistics, 84% of businesses and 83% of charities identified phishing attacks as their primary cybersecurity concern in 2023, followed by impersonation attempts affecting 35% of businesses and 37% of charities. This evolution in attack patterns has prompted insurers to adapt their coverage options and risk assessment methodologies, leading to more sophisticated and tailored cyber liability insurance solutions that address specific threat vectors and industry vulnerabilities.
The financial impact of cyber attacks has reached unprecedented levels, particularly in the retail sector, which suffered staggering losses of EUR 11 billion in 2023 due to various cyber incidents. This has catalyzed a transformation in how insurers approach risk assessment and coverage design, with a growing emphasis on sector-specific solutions. The insurance industry is responding by developing more sophisticated risk modeling techniques, leveraging advanced analytics, and incorporating real-time threat intelligence into their underwriting processes. This evolution has led to the emergence of specialized coverage options that address industry-specific vulnerabilities while providing comprehensive protection against both established and emerging cyber threats, including data breach insurance and digital risk insurance.
UK Cyber Insurance Market Trends
Rising Cybersecurity Threats and Vulnerabilities
The escalating frequency and sophistication of cyberattacks have become a primary driver for the UK cyber insurance market. According to recent data from 2023, an overwhelming 84% of businesses experienced phishing attacks, while 35% encountered impersonation attempts targeting their organization or staff. The threat landscape has further intensified with 17% of organizations facing malware attacks and 8% experiencing attempts to take over their websites, social media accounts, or email systems. These statistics underscore the critical need for comprehensive cyber risk management solutions across all business sectors.
The financial impact of these cyber threats has reached unprecedented levels, particularly affecting critical sectors. The retail sector alone faced losses of EUR 11 billion in 2023 due to cyberattacks, highlighting the devastating financial implications of inadequate cyber protection. The sophistication of these attacks has evolved beyond simple data breaches to include ransomware, business email compromise, and advanced persistent threats, compelling organizations to seek robust cybersecurity insurance coverage that can protect against both current and emerging cyber risks. The increasing complexity of these attacks, combined with the potential for significant financial losses, has made cyber liability coverage an essential component of modern business risk management strategies.
Expanding Digital Transformation and Technology Adoption
The rapid digitalization of business operations and services has significantly expanded the cyber risk landscape, driving the demand for comprehensive digital insurance solutions. As organizations increasingly rely on interconnected systems, cloud computing, and digital platforms, their exposure to cyber vulnerabilities has grown proportionally. This digital transformation is evidenced by the substantial growth in digital investment assets under management in the UK, which reached USD 61.93 billion in 2023, demonstrating the increasing integration of digital technologies across various sectors.
The adoption of emerging technologies, particularly in the financial services sector, has created new attack vectors that traditional insurance policies cannot adequately address. Financial institutions have reported a dramatic increase in cybersecurity breaches, with 640 incidents reported to the Information Commissioner's Office (ICO) in the year leading to June 2023, representing a threefold increase from the previous period. This surge in technology-related vulnerabilities has prompted organizations to seek specialized technology insurance coverage that can protect against both traditional and emerging digital risks, including those associated with cloud services, IoT devices, and digital payment systems.
Evolving Regulatory Landscape and Compliance Requirements
The stringent regulatory environment in the UK, particularly concerning data protection and cybersecurity, has become a significant driver for cybersecurity insurance adoption. Organizations face increasing pressure to comply with robust data protection regulations and demonstrate adequate cybersecurity measures. The insurance industry has responded by developing policies that specifically address regulatory compliance requirements, with 96% of insurers now offering coverage for business interruption insurance losses and an expanding range of first-party losses, reflecting the dynamic nature of cyber risks and regulatory demands.
The regulatory framework has also influenced the structure of cyber insurance policies, with insurers increasingly requiring organizations to meet specific cybersecurity standards as a prerequisite for coverage. This regulatory-driven approach has led to the development of more sophisticated insurance products that not only provide financial protection but also encourage the implementation of stronger security practices. Insurance providers are now offering tailored coverage options that align with specific industry regulations and compliance requirements, making information security insurance an essential tool for organizations seeking to manage both their regulatory obligations and cyber risks effectively.
Segment Analysis: By Product Type
Standalone Segment in UK Cyber (Liability) Insurance Market
The standalone segment has emerged as the dominant force in the UK cyber liability insurance market, commanding approximately 71% of the market share in 2024. This segment's prominence is driven by organizations' growing preference for dedicated cyber liability insurance policies that offer comprehensive coverage against evolving digital threats. The segment's robust growth is fueled by mounting legal and regulatory pressures post-data breaches, privacy violations, and the increasing sophistication of cyberattacks. Standalone policies are particularly appealing to large enterprises and organizations handling sensitive data, as they offer tailored coverage specifically designed to address complex cyber risks. The segment's growth is further accelerated by the rising awareness among businesses about the limitations of traditional insurance policies in covering cyber-related incidents. Additionally, the surge in ransomware attacks, data breaches, and other cyber threats has prompted organizations to seek specialized coverage that standalone policies provide, including incident response services, business interruption coverage, and regulatory compliance support.
Packaged Segment in UK Cyber (Liability) Insurance Market
The packaged segment of the cyber liability insurance market represents a strategic approach to risk management, particularly appealing to small and medium-sized enterprises (SMEs) seeking comprehensive coverage under a single policy. Insurers are actively bundling cyber liability insurance with traditional offerings like property, casualty, and professional indemnity, presenting a more robust risk management package. This consolidated approach not only enhances the value proposition but also resonates with businesses seeking a more holistic risk management solution. The integration of cyber liability with other insurance types ensures that businesses are protected from a wider array of potential threats. Recognizing the escalating threat landscape, insurers are crafting policies that blend cyber liability with other critical coverages like errors and omissions (E&O), directors and officers (D&O), and general liability insurance. This strategy addresses the interconnected nature of modern business risks while providing more tailored solutions that meet the specific needs of different industries.
Segment Analysis: By Application Type
Banking & Financial Services Segment in UK Cyber (Liability) Insurance Market
The Banking & Financial Services segment maintains its dominant position in the UK Cyber (Liability) Insurance market, commanding approximately 24% market share in 2024. This leadership position is primarily driven by the sector's heightened vulnerability to cyber threats, as evidenced by the staggering 640 cybersecurity breaches reported to the Information Commissioner's Office (ICO) by UK financial services firms in 2023, marking a threefold increase from the previous period. The segment's prominence is further reinforced by the surge in online and mobile banking platforms, coupled with the sector's massive digital transformation initiatives. Major developments like Nationwide's landmark USD 3.6 billion acquisition of Virgin Money have also contributed to the segment's growth, as such consolidations necessitate robust cyber crime insurance coverage to protect merged digital assets and customer data.
IT & Telecom Segment in UK Cyber (Liability) Insurance Market
The IT & Telecom segment emerges as the fastest-growing segment, projected to expand at approximately 15% during 2024-2029. This remarkable growth trajectory is fueled by the sector's rapid digital transformation and the implementation of advanced technologies like 5G networks and IoT devices. The integration of these technologies has significantly expanded the attack surface for cybercriminals, making robust network security insurance essential for telecom providers. The segment's growth is further accelerated by the increasing complexity of telecom infrastructures, which provides cybercriminals with an expanding array of vulnerabilities to exploit. The rise in DDoS attacks, data breaches, and ransomware incidents specifically targeting telecom networks has made comprehensive cyber extortion insurance coverage a critical necessity for companies operating in this space.
Remaining Segments in UK Cyber (Liability) Insurance Market by Application Type
The Healthcare and Retail segments also play crucial roles in shaping the UK cyber insurance landscape. The Healthcare sector's increasing adoption of telemedicine and digital health records has created new vulnerabilities requiring specialized privacy breach insurance. Meanwhile, the Retail sector faces unique challenges with the surge in e-commerce platforms and digital payment systems, making it particularly susceptible to cyber threats. Both sectors demonstrate strong growth potential, driven by their ongoing digital transformation initiatives and the growing recognition of digital risk insurance as a critical risk management tool. The diversity of these segments contributes to the market's overall robustness and highlights the widespread need for comprehensive cyber insurance solutions across various industries.
UK Cyber Insurance Industry Overview
Top Companies in UK Cyber Liability Insurance Market
The UK cyber liability insurance market features prominent players, including AIG, Allianz, Beazley, Hiscox, Marsh, Tokio Marine Kiln, AXA XL, CFC Underwriting, NIG, and Zurich. These companies are driving market evolution through continuous product innovation, particularly in areas like ransomware protection and supply chain coverage. The industry is witnessing increased investment in technological capabilities, with insurers developing sophisticated risk assessment tools and real-time monitoring systems. Companies are forming strategic partnerships with cybersecurity firms to enhance their service offerings and risk management capabilities. Market leaders are expanding their cyber risk coverage options to address emerging threats while simultaneously strengthening their underwriting practices. The competitive landscape is characterized by a growing focus on specialized cyber insurance products, particularly for sectors like financial services, healthcare, and retail, alongside efforts to improve claims processing efficiency through digital transformation.
Dynamic Market with Diverse Player Profiles
The UK cyber insurance market exhibits a fragmented structure with a mix of global insurance conglomerates and specialized cyber insurance providers. Market fragmentation is evident through the diverse array of players offering distinct cyber liability coverage with unique terms and conditions. The landscape is marked by ongoing consolidation activities, as established insurers seek to strengthen their market position through strategic acquisitions and partnerships. Global players leverage their extensive resources and international experience to provide comprehensive coverage, while specialist insurers focus on niche segments with tailored solutions.
The market is experiencing a transformation driven by the entry of insurtech firms and the evolution of traditional insurers' digital capabilities. Companies are increasingly focusing on developing innovative products and services to address the evolving cyber threat landscape. The competitive dynamics are shaped by insurers' ability to provide comprehensive risk management solutions beyond traditional insurance coverage. Market participants are actively expanding their distribution networks through broker partnerships and digital platforms, while also investing in data analytics and artificial intelligence to enhance their underwriting capabilities.
Innovation and Adaptability Drive Market Success
Success in the UK cyber insurance market increasingly depends on insurers' ability to combine technological innovation with deep underwriting expertise. Market leaders are strengthening their positions by developing comprehensive risk assessment frameworks, implementing advanced pricing models, and offering value-added services such as cyber incident response and prevention support. Companies are focusing on building strong relationships with brokers and establishing direct digital channels to enhance market penetration. The ability to provide tailored solutions for different industry sectors while maintaining profitability through effective risk management is becoming crucial for market success.
For new entrants and challenger firms, success lies in identifying underserved market segments and developing specialized solutions. Companies need to focus on building robust cybersecurity partnerships and establishing clear value propositions that differentiate them from established players. The regulatory environment continues to shape market dynamics, with insurers needing to balance innovation with compliance requirements. Market participants must also address the growing concern of systemic risk while maintaining pricing stability and coverage adequacy. The future competitive landscape will be determined by insurers' ability to adapt to emerging cyber threats, maintain underwriting discipline, and provide comprehensive risk management solutions.
UK Cyber Insurance Market Leaders
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Allianz
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Beazley
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Hiscox
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Marsh
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AIG
- *Disclaimer: Major Players sorted in no particular order
UK Cyber Insurance Market News
- September 2023: Cowbell is committed to addressing cyber risk challenges on a global scale, and our expansion into the UK is a testament to this. Cowbell Prime One is tailored towards SME and mid-market customers and allows brokers to customize cyber policies for different risk exposures, such as email scams, ransomware, and social engineering.
- March 2023: Cyber insurance provider Coalition is set to enter the excess cyber insurance market in the United Kingdom to help protect businesses with enhanced coverage. The firm has confirmed that it will extend its reach to provide full-follow form coverage and protection of up to GBP 10 million (USD 12126000) above a primary layer of insurance from another insurer for both cyber and technology professional indemnity (PI) lines.
UK Cyber Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Data Privacy Regulations
- 4.2.2 Business Interruption
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4.3 Market Restraints
- 4.3.1 Complexity and Lack of Understanding
- 4.3.2 Cost of Coverage
- 4.4 Value Chain Analysis
- 4.5 Market Opportunities
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4.6 Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Insights on Technological Innovations in the Market
- 4.8 Insights on Consumer Behavior Analysis
- 4.9 Government Regulation in Market
- 4.10 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Product Type
- 5.1.1 Packaged
- 5.1.2 Standalone
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5.2 By Application Type
- 5.2.1 Banking & Financial Services
- 5.2.2 IT & Telecom
- 5.2.3 Healthcare
- 5.2.4 Retail
- 5.2.5 Other Application Types
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 AIG
- 6.2.2 Allianz
- 6.2.3 Beazley
- 6.2.4 Hiscox
- 6.2.5 Marsh
- 6.2.6 Tokio Marine Kiln
- 6.2.7 AXA XL
- 6.2.8 CFC Underwriting
- 6.2.9 NIG
- 6.2.10 Zurich*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER
UK Cyber Insurance Industry Segmentation
Cyber liability insurance is an insurance policy that provides businesses with a combination of coverage options to help protect the company from data breaches and other cyber security issues. It's not a question of if the organization will suffer a breach but when. Travelers and cyber insurance policyholders can also access tools and resources to manage and mitigate cyber risk. Cyber insurance generally covers your business's liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers, and health records.
The UK cyber (liability) insurance market is segmented by product type (packages, standalone) and application type (banking & financial services, IT & telecom, healthcare, retail, and other application types).
The report offers market size and forecasts for the UK cyber (liability) insurance market in value (USD) for all the above segments.
By Product Type | Packaged |
Standalone | |
By Application Type | Banking & Financial Services |
IT & Telecom | |
Healthcare | |
Retail | |
Other Application Types |
UK Cyber Insurance Market Research FAQs
How big is the UK Cyber Insurance Market?
The UK Cyber Insurance Market size is expected to reach USD 1.53 billion in 2025 and grow at a CAGR of 13.40% to reach USD 2.87 billion by 2030.
What is the current UK Cyber Insurance Market size?
In 2025, the UK Cyber Insurance Market size is expected to reach USD 1.53 billion.
Who are the key players in UK Cyber Insurance Market?
Allianz, Beazley, Hiscox, Marsh and AIG are the major companies operating in the UK Cyber Insurance Market.
What years does this UK Cyber Insurance Market cover, and what was the market size in 2024?
In 2024, the UK Cyber Insurance Market size was estimated at USD 1.32 billion. The report covers the UK Cyber Insurance Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Cyber Insurance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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UK Cyber (Liability) Insurance Market Research
Mordor Intelligence provides a thorough analysis of the cyber insurance industry. We leverage extensive expertise in cyber risk management and digital insurance research. Our detailed report covers crucial aspects such as cyber liability insurance, business interruption insurance, and cybersecurity insurance markets. The analysis includes cyber liability coverage, cyber attack insurance, and technology insurance. Stakeholders can access crucial insights in an easy-to-read report PDF format available for download.
The report offers valuable intelligence on digital asset protection, cyber incident response strategies, and data breach insurance trends. Stakeholders gain a detailed understanding of information security insurance, cyber crime insurance, and insurance for technology errors and omissions. Our analysis also covers digital risk insurance, cyber extortion insurance, and network security insurance. It addresses privacy breach insurance concerns and network liability insurance considerations. The comprehensive coverage includes IT security insurance developments and emerging cyber risk coverage solutions. This enables businesses to make informed decisions in this rapidly evolving sector.