Global Cyber Insurance Market Cooling in Spots, But Claims Soar 230% in the UK

After several years of continually rising cyber insurance prices, some parts of the world have started seeing a little relief as new capital enters the market. The UK is not likely to be one of those places any time soon, at least according to new numbers released by the Association of British Insurers (ABI).

The report covers the numbers from 2024, which are up 230% from those taken in 2023. Extended rashes of ransomware, data theft and business disruption continue to push claims upward as the nation finds itself heavily targeted by sophisticated criminal hackers. ABI gets its numbers from about 300 of its own clients that represent a broad range of sizes and industries across the UK.

UK cyber insurance claims up during crime waves

The global debate over making ransomware payments to criminals has  now evolved to cover the necessity of cyber insurance, but the market appears to be going nowhere but up in the UK. As mentioned the annual ABI report tallies claim amounts from the prior year, so these record-breaking numbers do not even factor in the major cyber crime wave the UK saw unfold this year.

As far as the 2024 numbers go, a £59 million cyber insurance claim total in 2023 jumped all the way to £197 million in the following year. The industry also saw a 17% total increase in cyber insurance policies being taken out. The majority reason for claims also now stems from ransomware or malware attacks, up to 51% of incidents from just 32% the prior year.

2025 attacks will likely push cyber insurance claims even higher

It’s impossible to say until ABI gathers 2025’s numbers and publishes them sometime late next year, but it’s a fairly safe bet that even bigger jumps in cyber insurance costs are coming. Marks & Spencer, one of the victims of this year’s Scattered Spider targeted campaign against UK retailers, has already indicated it plans to claim the maximum £100 million allowed by its coverage.

Other major UK attacks in 2025 include a string of offenses against NHS trusts, other retailers such as Co-op and Harrods, Heathrow Airport, and Jaguar Land Rover among the biggest names. However, not all of these incidents will factor in. For example, Co-op has already stated that it did not have significant enough cyber insurance coverage to make much more than a small claim on its attack. And Jaguar Land Rover was caught in the middle of negotiating a new policy when it was hit, and did not have any cyber coverage at all for that period; it relied on a £1.5bn loan from the UK government for its recovery instead.

But with 429 total cyber incidents counted through September and half of those classed as “nationally significant” by the NCSC (an increase of 50% from 2024), it is a safe bet the 2025 numbers will turn out to be comparable at bare minimum.