Arctic Wolf Reveals Only 50% of UK&I Businesses Have Cyber Insurance

Study also finds AI and ransomware are top concerns for insurance brokers as threat landscape intensifies

Arctic Wolf, a global leader in security operations, has today published the findings of its 2025 Cyber Insurance Report revealing cyber insurance representatives across the UK and Ireland (UK&I) believe just half (50%) of existing clients have cyber insurance – despite the average attack costing almost £90,000.

The research, based on 400 professionals from cyber insurance broker and carrier companies worldwide, explores the state of the cyber insurance market within the current threat landscape. It finds 70% of UK&I brokers expect the number of new claims against insurance policies to rise over the next year, with 68% predicting premium rates to rise in the same period.

Insurers globally say AI, large language models (LLMs), and data privacy are the primary causes of more sophisticated attacks. Ransomware is the most frequent type of claim worldwide, with on average, 18% of respondents suggesting their clients have experiencing an attack in the last 12 months – followed by data breaches, theft of funds and phishing incidents. These are having a significant financial impact, with the average claim totalling £87,000 ($115,000) and rising to £633,641 ($812,360) for large businesses.

Brokers in the UK&I are more likely to partner with cybersecurity providers than the global average, while almost a quarter (23%) have negotiated pre-arranged insurance benefits for clients with certain cyber risk management vendors. This suggests an increasingly active role in mitigating risk, with many also working alongside incident response specialists to help prevent breaches and reduce the likelihood of insurance claims.

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.”

For additional insights and to download the full 2025 Arctic Wolf Cyber Insurance Report, visit arcticwolf.com.

Please follow and like us: