General Insurance Article - Heathrow cyber attack shows the need for cyber insurance

 The recent cyber-attack highlights the need for parametric and preventive cyber insurance, even as nearly half of UK consumers are open to purchasing a travel insurance policy that pays out automatically, according to a survey by GlobalData, a leading data and analytics company.

 GlobalData’s 2024 UK Insurance Consumer Survey indicates that 45.7% of UK consumers would be willing to pay more for a travel policy that pays out automatically. Specifically, 24.7% of respondents would accept a premium increase of up to 5%, while 14.1% would pay up to 10% more. In contrast, 37.5% said they would not be willing to pay extra and 16.8% were unsure.

 Charlie Hutcherson, Insurance Analyst at GlobalData, comments: “Parametric travel insurance has the potential to transform the customer experience by removing the complexity of claims processes and providing near-instant payouts when disruption occurs. At the same time, cyber insurance is no longer just about financial compensation, it is increasingly about helping businesses anticipate, prevent, and respond to attacks. Together, these products address two of the most pressing risks facing both consumers and businesses, and insurers must act quickly to build awareness and adoption if they want to remain competitive.”

 The incident also highlights the growing threat of cyber-attacks across industries. GlobalData’s 2025 UK Commercial Insurance Broker Survey found that 53.6% of brokers cited cyber insurance as the new or emerging product with the greatest growth potential, reflecting increasing demand from businesses seeking to safeguard against operational and financial disruption.

 Hutcherson concludes: “As flight disruption and cyber threats become more frequent, insurers that can effectively market parametric and cyber coverage will be best placed to retain customers and capture growth opportunities. The events of this weekend underline the urgency of delivering solutions that are both protective and proactive.”