Half of businesses in the UK and Ireland remain without cyber insurance despite the increasing threat of attacks, according to Arctic Wolf’s 2025 Cyber Insurance Report.

Published today, the study found that 70% of the brokers polled expect new claims to rise over the next year, with 68% predicting higher premium rates.

While artificial intelligence, large language models and data privacy issues are driving more sophisticated attacks, ransomware remains the most common type of claim. On average, claims cost £87,000. For large businesses the figure rises to £633,641.

Kevin Kiser, senior director of strategy, insurance alliances at Arctic Wolf, said: “As threat tactics evolve, cyber insurance is no longer a ‘nice to have’ but a strategic pillar of modern risk management. While the insurance industry is working with clients to improve protection, attacks are ultimately costing businesses hundreds of thousands of pounds worth of damage. Building on this momentum will therefore be critical to businesses not just staying protected, but fully operational in the months and years ahead.”

Arctic Wolf's study was conducted amongst 400 cyber insurance brokers and carriers worldwide.

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