Strategic Intelligence: Cyber Insurance 2025
Description
Strategic Intelligence: Cyber Insurance 2025
Summary
This report provides a detailed analysis of the cyber insurance landscape, examining growth drivers, regulatory developments, and the competitive positioning of leading insurers. Drawing on GlobalData’s proprietary surveys, it explores how increasing cyber threats and regulatory scrutiny are influencing demand across both SMEs and consumers. The report assesses awareness, purchasing behavior, and attitudes toward cyber insurance, highlighting ongoing underinsurance despite heightened exposure. It also evaluates how insurers are differentiating via partnerships, product innovation, and risk management services. With cyber risks becoming more frequent and severe, the report outlines the key opportunities and challenges shaping the UK cyber insurance market’s continued expansion.
Cyber insurance provides cover against first- and third-party financial losses arising from damage to, or loss of data from, IT systems. Growth in the cyber insurance space is being fueled by the increasing digitalization of business operations, expanding regulatory requirements around data protection, and the financial and reputational consequences of high-profile breaches such as the Jaguar Land Rover attack. In addition, growing awareness among small- and medium-sized enterprises is driving new demand in previously underpenetrated segments. As more firms adopt cloud-based systems, remote working models, and interconnected supply chains, the need for robust cyber risk transfer solutions continues to accelerate. Insurers are responding by offering more accessible, modular, and embedded products that combine prevention tools with traditional coverage, further expanding the market’s reach.
Scope
Summary
This report provides a detailed analysis of the cyber insurance landscape, examining growth drivers, regulatory developments, and the competitive positioning of leading insurers. Drawing on GlobalData’s proprietary surveys, it explores how increasing cyber threats and regulatory scrutiny are influencing demand across both SMEs and consumers. The report assesses awareness, purchasing behavior, and attitudes toward cyber insurance, highlighting ongoing underinsurance despite heightened exposure. It also evaluates how insurers are differentiating via partnerships, product innovation, and risk management services. With cyber risks becoming more frequent and severe, the report outlines the key opportunities and challenges shaping the UK cyber insurance market’s continued expansion.
Cyber insurance provides cover against first- and third-party financial losses arising from damage to, or loss of data from, IT systems. Growth in the cyber insurance space is being fueled by the increasing digitalization of business operations, expanding regulatory requirements around data protection, and the financial and reputational consequences of high-profile breaches such as the Jaguar Land Rover attack. In addition, growing awareness among small- and medium-sized enterprises is driving new demand in previously underpenetrated segments. As more firms adopt cloud-based systems, remote working models, and interconnected supply chains, the need for robust cyber risk transfer solutions continues to accelerate. Insurers are responding by offering more accessible, modular, and embedded products that combine prevention tools with traditional coverage, further expanding the market’s reach.
Scope
- GlobalData estimates that the global cyber insurance market will grow to $22.2 billion by 2025 and $35.4 billion by 2030.
- A GlobalData poll run on Verdict Media sites in Q1 2025 found that 40% of industry insiders believe the biggest challenge for insurers in offering cyber insurance is accurately assessing risk.
- GlobalData’s Q2 2025 Thematic Intelligence: Tech Sentiment Polls found that 60.3% of respondents said that cybersecurity is already disrupting their industry, while GlobalData’s 2025 UK SME Insurance Survey found that 63% of medium-sized businesses in the UK have cyber cover in place.
- Determine market size and key growth opportunities in the global cyber insurance landscape.
- Benchmark yourself against the leaders in the market.
- Ensure you remain competitive as new innovations and insurance models begin to enter the space.
- Be prepared for how regulation will impact cyber insurance over the next few years.
Table of Contents
94 Pages
- Executive Summary
- Players
- Thematic Briefing
- Threat actors
- Trends
- Technology trends
- Macroeconomic trends
- Regulatory trends
- Industry Analysis
- Market size and growth forecasts
- Chubb, AXA, and Fairfax are among the leading cyber insurers
- There is no single dominant provider in the UK SME cyber insurance market
- Cyber dominates broker growth expectations ahead of all other emerging lines
- Accurate risk assessment remains the industry’s greatest obstacle
- Cyber insurance market dynamics for SMEs
- Cyber insurance uptake rises sharply with business size
- Brokers dominate the distribution of cyber insurance
- SMEs prefer purchasing cyber insurance digitally
- Broker advice and media coverage are the top triggers for cyber insurance
- Insurers need to educate businesses on the risk of cyber attacks
- Nearly one in five SMEs changed provider
- Service and pricing drive switching decisions
- Premiums mostly increase with little change in cover
- The personal cyber insurance market
- Adoption of personal cyber insurance remains limited
- Willingness to buy is far higher than current adoption rates
- Most policies are bundled with home insurance rather than sold standalone
- Financial reimbursement is the leading priority among consumers
- Traditional insurers remain the most trusted source of protection
- High-profile breach highlights the cost of operational disruption at scale
- Timeline
- Signals
- M&A trends
- Venture financing trends
- Total deal value rebounds in 2025 after a surge in 2023
- News trends
- Value Chain
- Product development
- Marketing and distribution
- Underwriting and risk profiling
- Claims management
- Customer service
- Companies
- Public companies
- Private companies
- Sector Scorecards
- Non-life insurance sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Threat actors
- Table 2: Technology trends
- Table 3: Macroeconomic trends
- Table 4: Regulatory trends
- Table 5: M&A trends
- Table 6: Venture financing trends
- Table 7: Public companies
- Table 8: Private companies
- Table 9: Glossary
- Table 10: GlobalData reports
- List of Figures
- Figure 1: Who are the leading players in the cyber insurance theme and where do they sit in the value chain?
- Figure 2: We estimate that the global cyber insurance market will be worth $35.4 billion in 2030
- Figure 3: Chubb is the largest cyber insurer in the US, with a 7.9% market share and DWP of $573.6 million
- Figure 4: Aviva leads the UK SME cyber insurance market
- Figure 5: Brokers view cyber insurance as the emerging product with the most growth potential
- Figure 6: Assessing risk accurately is the biggest challenge for cyber insurers
- Figure 7: Larger businesses lead the adoption of cyber insurance
- Figure 8: Brokers dominate distribution while digital and banking channels remain secondary
- Figure 9: Nearly half of UK SMEs purchased cyber insurance through the internet
- Figure 10: Over a quarter of UK SMEs purchased cyber insurance because they were advised by a broker
- Figure 11: Low perceived risk remains the leading barrier to adoption
- Figure 12: The majority of UK SMEs renewed their cyber insurance policy
- Figure 13: The main reasons SMEs changed their cyber insurance policy were due to service and pricing
- Figure 14: The majority of SMEs witnessed an increase in premiums
- Figure 15: Nearly one in five consumers has personal cyber insurance
- Figure 16: Over a quarter of consumers would be interested in purchasing personal cyber insurance
- Figure 17: Personal cyber insurance is most commonly distributed through home insurance
- Figure 18: The majority of consumers favor cyber cover combined with home insurance
- Figure 19: Financial reimbursement is the most desirable feature in a personal cyber insurance policy
- Figure 20: Consumers still place the greatest trust in established financial institutions
- Figure 21: The cyber insurance story
- Figure 22: The value of cyber insurance-related deals peaked in 2023
- Figure 23: The number of cyber insurance articles has been increasing over the past five years
- Figure 24: The insurance value chain
- Figure 25: Who does what in the non-life insurance space?
- Figure 26: Thematic screen
- Figure 27: Valuation screen
- Figure 28: Risk screen
- Figure 29: Our five-step approach for generating a sector scorecard
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