Arctic Wolf, a players in security operations, has unveiled its 2025 Cyber Insurance Report, underscoring a significant gap in cyber insurance coverage across the UK and Ireland (UK&I). The findings reveal that only half of existing clients possess cyber insurance, even though the average cyber attack costs nearly £90,000.
The study involved 400 cyber insurance brokers and carriers worldwide, providing a comprehensive view of the cyber insurance market amidst today's evolving threat landscape. An overwhelming 70% of UK&I brokers anticipate a rise in new claims over the forthcoming year, with 68% expecting premium rates to climb.
Globally, insurance providers have identified artificial intelligence, large language models, and data privacy as catalysts for more sophisticated cyber threats. Ransomware remains the top claim type worldwide, with 18% of respondents reporting client attacks in the past year, followed by data breaches, financial theft, and phishing incidents. The financial toll is considerable, with claims averaging £87,000 and soaring to £633,641 for larger enterprises.
Notably, UK&I brokers are distinguishing themselves by notably partnering with cybersecurity firms, surpassing the global average. Close to a quarter have secured pre-arranged insurance benefits through affiliations with specific risk management vendors. This proactive stance indicates an active role in reducing risks, often collaborating with incident response experts to curtail insurance claims.
For Arctic Wolf, as articulated by Kevin Kiser, Senior Director of Strategy, Insurance Alliances, “As threat tactics evolve, cyber insurance is no longer 'nice to have' but a strategic epillar of modern risk management.” The sector is ardently working with clients to fortify protection, but attacks inflict substantial financial harm.
