Market Overview

The UK Cyber Insurance Market was valued at USD 692.6 Million in 2024 and is forecasted to reach USD 3,167.2 Million by 2033, growing at a CAGR of 14.82% during this period. The market growth is driven by increasing cyber threats, strict regulatory requirements including GDPR, rising costs of data breaches, growing cybersecurity awareness, digital transformation, remote work trends, and expanding cloud services. 

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

UK Cyber Insurance Market Key Takeaways

• The UK Cyber Insurance market size reached USD 692.6 Million in 2024.
• The market is expected to grow at a CAGR of 14.82% during the forecast period 2025-2033.
• The market is projected to reach USD 3,167.2 Million by 2033.
• In 2024, over 400,000 fraud and computer misuse cases were reported in the UK.
• Phishing scams were the most common cyber-attack, occurring in 84% of incidents.
• 50% of UK businesses reported being victims of cybercrime.
• UK cybercrime costs the economy an estimated A327 billion annually.

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Market Growth Factors

The need for cyber insurance in the UK is increasing as a result of cyber-attacks․ There were over 400,000 fraud and computer misuse crimes reported in the UK in 2024․ Phishing scams made up 84% of all cyber incidents․ The UK was the second most targeted country in the world․ The number of ransomware attacks rose by 70%․ There was an increase in interest in insurance against cyber risk in the UK because of the high number of cyber incidents․

Regulatory requirements are another major reason․ Stringent regulations like the EU's GDPR lead companies to seek cyber insurance as a hedge against data breaches․ In April 2024, the UK government implemented consumer laws requiring all internet-connected smart devices made after the date of the law to comply with minimum security standards, including not having factory preset passwords or requiring passwords to be changed․ This was introduced to prevent attacks like the Mirai attacks in 2016 and bank service outages against Lloyds and RBS․

Digitalization, remote work environment, and the growing reliance on cloud services are further driving the market․ The high cost of data breaches and growing awareness of cybersecurity risks among businesses also strengthen demand for cyber insurance․ The changing cybersecurity threat landscape and regulatory pressures represent growth opportunities into 2033․

Market Segmentation

Component Insights:

• Solutions: The market includes cyber insurance solutions focused on protecting against cyber threats.
• Services: Encompasses related services leveraged by organizations to enhance their cyber insurance coverage and risk management.

Insurance Type Insights:

• Packaged: Cyber insurance products bundled to cover multiple risks in one policy.
• Stand-alone: Insurance policies focused solely on cyber-related coverage.

Organization Size Insights:

• Small and Medium Enterprises: Includes SMEs adopting cyber insurance to safeguard against cyber risks.
• Large Enterprises: Larger organizations driving demand with more extensive insurance needs.

End Use Industry Insights:

• BFSI: Banking, Financial Services and Insurance sector is a key consumer of cyber insurance.
• Healthcare: Cyber insurance applicable for healthcare organizations handling sensitive data.
• IT and Telecom: Telecommunications and IT companies adopting cyber coverage.
• Retail: Retail sector cyber insurance adoption.
• Others: Other industries utilizing cyber insurance products.

Regional Insights

The report covers major UK regions including London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others. Although specific regional market shares or CAGR values are not detailed, London emerges as a prominent region in the cyber insurance market landscape, reflecting concentrated demand and activity.

Recent Developments & News

In May 2024, Howden launched a unique cyber insurance platform tailored for SMEs with revenues up to USD 250 million. The platform simplifies purchasing cyber insurance into four steps, removing complex questionnaires and terminology to ease access for smaller businesses. In April 2024, Coalition introduced its active cyber insurance product on the Acturis NOW platform, enabling more brokers to quote and bind policies, enhancing protection for SMEs against evolving cyber threats.

Key Players

• Howden
• Coalition

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