UK brokers consider cyber insurance coverage is the brand new or rising industrial insurance coverage product with essentially the most progress potential, as per a GlobalData survey. Considerably low cyber insurance coverage penetration charges amongst smaller corporations make SMEs a largely untapped marketplace for progress.
In accordance with GlobalData’s 2025 UK Industrial Insurance coverage Dealer Survey, over half of brokers (53.6%) consider cyber insurance coverage has the potential to report the strongest progress amongst new or rising industrial insurance coverage merchandise. Cyber insurance coverage considerably surpasses the potential of different rising merchandise, with renewable vitality insurance coverage—the second-most fashionable product—attaining 8.8% of responses.
Which new or rising industrial insurance coverage product do you see as having essentially the most progress potential? 2025
GlobalData’s findings are supported by latest analysis revealed by Aon. Its Reinsurance Market Dynamics: Midyear 2025 Renewal report finds that reinsurance capability is poised to help progress within the international cyber insurance coverage market as reinsurers diversify their methods to faucet into rising dangers. Higher urge for food round this line of enterprise will assist softening market situations, as a rise in capability will help insurers fight hovering premiums.
Regardless of the rising consciousness of cyber dangers amongst companies, the adoption of cyber insurance coverage isn’t common, with underinsurance remaining a key problem to the business. The safety hole is extra pronounced amongst smaller companies, with GlobalData’s 2025 UK SME Insurance coverage Survey revealing that 60.8% of SMEs don’t maintain such cowl. The most typical purpose for not holding cyber insurance coverage is as a result of companies consider it’s unlikely that they are going to be a goal of a cyberattack, as cited by 40.5% of SMEs. But the chance of a cyberattack is six instances higher than an occasion impacting property, based on Aon.
Insurers might want to deal with the safety hole by a number of fronts to develop the cyber insurance coverage market. Specializing in conveying the affect {that a} cyberattack can have on a enterprise—not solely by way of operations, but in addition popularity—could be helpful. Equally, there might be higher transparency on coverage wording, making it clearer what the perils and exclusions are to keep away from this being a barrier to patrons. Lastly, SMEs stay a largely untapped market and are sometimes extra susceptible to assaults however have fewer assets to reply successfully. This makes them sturdy candidates for tailor-made cowl, growing merchandise that handle their particular wants.
