General Insurance Article - Nearly £200 million paid in cyber claims last year

 Data from firms participating in the ABI’s cyber data collection revealed a 230% year-on-year increase in the amount paid out to support businesses with cyber-attacks, £138 million more than in 2023.

 Malware and ransomware alone accounted for over half (51%) of all claims. This is up from a total of 32% of all claims in 2023, highlighting how increasingly sophisticated digital threats are causing more extensive damage, leading to higher payouts.  It also underscores the critical support insurance provides when such attacks halt business operations.

 Cyber insurance is proving to be indispensable in today’s digital economy, protecting businesses from costly breaches, ransomware, and email compromise while actively helping them prevent attacks and boost resilience. With cyber threats escalating, demand for protection surged in 2024. 17% more policies were taken out than the previous year, presenting clear evidence that UK businesses are prioritising protection against evolving digital risks.

 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.”