Cyber insurance claims in the UK more than tripled last year, with malware and ransomware causing extensive damage.
UK insurers paid out £197 million ($259 million) in cyber insurance claims last year, representing a 230% year-on-year increase from £59 million in 2023, according to the Association of British Insurers (ABI).
The participating insurers paid £138 million more compared to the 2023 figure.
Malware and ransomware alone accounted for over half (51%) of all claims. This proportion grew significantly from a total of 32% of all claims in 2023.
The rising payouts highlight that “increasingly sophisticated digital threats are causing more extensive damage,” and can halt business operations.
The number of cyber insurance policies sold to UK businesses increased by 17% last year.
ABI argues that cyber insurance should become part of every organization’s modern risk management strategy, “protecting businesses from costly breaches, ransomware, and email compromise while actively helping them prevent attacks and boost resilience.”
“Cyber insurance is more than just a financial safety net. The right policy not only supports businesses in the aftermath of an incident but can also help prevent attacks through access to expert advice, threat monitoring, and incident response planning,” said Jonathan Fong, Head of General Insurance Policy at the ABI.
ABI represents over 300 firms, including major industry players, and is broadly representative of the UK insurance market. However, ABI noted that the figures are not extrapolated up to market totals.
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