UK insurers paid out nearly £200 million to help businesses recover from cyber incidents last year, according to new figures from the Association of British Insurers (ABI).
This is a steep increase that highlights the growing impact of digital threats on the UK economy.
The ABI’s latest data shows £197 million was paid out in 2024, a 230% increase year-on-year, with payouts up £138 million from 2023.
More than half of all claims (51%) were linked to malware and ransomware, compared with 32% a year earlier, evidence of how increasingly sophisticated attacks are inflicting greater operational and financial damage.
The trade body stated that the figures demonstrate the growing importance of cyber insurance in modern risk management.
With threats escalating, demand for protection is also growing. Seventeen percent more cyber policies were taken out in 2024 than in the previous year, as organisations seek stronger defences and faster recovery from disruption.
Jonathan Fong, Head of General Insurance Policy at the ABI, said: “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. With cyber threats continuing to grow in scale and sophistication, it needs to be a critical component of every organisation’s modern risk management strategy.”
Lydia Zhang, President & Co-Founder, of Ridge Security Technology, added: “In July, the UK government said it plans to ban public bodies from paying ransoms to computer hackers. Private companies will also be required to inform authorities if they intend to comply with ransom demands.”
She said it’s ironic that cyber insurance has become a viable solution. “Without thorough security testing or a widely accepted industry standard established before setting cyber insurance terms, it opens the door to hackers who can then target organizations with the highest insurance coverage.”
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Kirsten Doyle has been in the technology journalism and editing space for nearly 24 years, during which time she has developed a great love for all aspects of technology, as well as words themselves. Her experience spans B2B tech, with a lot of focus on cybersecurity, cloud, enterprise, digital transformation, and data centre. Her specialties are in news, thought leadership, features, white papers, and PR writing, and she is an experienced editor for both print and online publications.
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