SMEs yet to embrace cyber insurance

There have been suggestions that cyber insurance could become a market differentiator, dividing the haves and have-nots in terms of who has been approved actively secure by the insurance industry.

Managed service providers (MSPs) have been warned that they face being measured by the insurance industry – and could be found wanting if they fail to meet requirements. Customers are also at risk of having to cover the cost of disruption if they have no cover.

But for the insurance industry to have a wide-scale influence on the channel and customer base, it must be taken seriously, and there are indications from Artic Wolf that a significant number of users are yet to embrace the concept of cyber security.

The firm’s 2025 Cyber insurance report revealed that only half of businesses in the UK and Ireland (UK&I) have cyber insurance. That means the other half are yet to sign up to schemes that could help them with the average £90,000 cost of a cyber attack.

When the security player quizzed insurance brokers to get a picture of what was happening with customers, it found that 70% of UK&I brokers expected the number of new cyber claims to rise over the next year.

As…