The ABI has urged businesses to make cyber insurance a key part of their risk management strategy, as its latest figures show £197m was paid out to help organisations recover from cyber incidents in 2024.

Data from firms participating in the ABI’s cyber data collection revealed a 230% year-on-year increase in the amount paid out to support businesses with cyber-attacks – £138m more than in 2023. Malware and ransomware alone accounted for over half (51%) of all claims. This is up from a total of 32% of all claims in 2023, highlighting how increasingly sophisticated digital threats are causing more extensive damage, leading to higher payouts.

With cyber threats escalating, the ABI said that demand for protection surged in 2024. 17% more policies were taken out than the previous year, suggesting that UK businesses are prioritising protection against evolving digital risks.

Jonathan Fong, head of general insurance policy at the ABI, said: “Cyber insurance is more than just a financial safety net. The right policy not only supports businesses in the aftermath of an incident but can also help prevent attacks through access to expert advice, threat monitoring, and incident response planning.

“With cyber threats continuing to grow in scale and sophistication, it needs to be a critical component of every organisation’s modern risk management strategy.”

---