In Focus: Could cyber-centric broker schemes boost commercial cyber insurance penetration?

WE ASKED: “What impact could cyber-centric broker schemes have on improving the penetration of commercial cyber insurance?”

Lindsey Maher, head of cyber business development, CFC

Cyber‑centric broker schemes have the potential to accelerate penetration by closing the gap between risk awareness and policy adoption.

Although most SMEs recognise cyber risk, take up across schemes often sits below 15%, leaving significant untapped premium and a clear growth opportunity for brokers.

With over half of UK brokers identifying cyber as the strongest area for organic portfolio expansion, schemes that make cyber easy to position and feel like a natural extension of existing conversations can drive meaningful uptake.

These schemes also elevate the broker’s role. Leading with cyber reinforces a commitment to protecting clients beyond traditional lines.

Many brokers now open new business conversations with cyber, often capitalising when incumbents have not raised the topic.

One of the most influential levers is ensuring brokers themselves are insured. It is difficult to credibly advocate for cover without holding it and brokers who have experienced an incident become more effective at explaining the value of a policy.

The UK market has seen high profile cyber events where SMEs faced tangible losses, prompting greater adoption.

In Q4 2025, the market recorded the highest volume of cyber submissions in 25 years. Competition is intensifying, benefiting clients by increasing awareness and prompting more insurer engagement.

There has never been a better moment for brokers to embed cyber in their core proposition and drive penetration.

Richard Hodson, founder and consultant, RCH Insurance Services

There is no single silver bullet that will suddenly drive widespread adoption of cyber insurance.

Instead, progress depends on a combination of changes across distribution, education, product design and broker behaviour.

Where the argument for specialist cyber distribution does hold some weight is in what it reveals about the way insurance is sold more generally – and how that process has failed to evolve in line with today’s risk landscape.

Cyber insurance has been available for over 15 years yet, compared to traditional property and casualty covers, it is still treated as a ‘new’ or bolt on cover. As a result, cyber is frequently deprioritised during renewals.

Many package and scheme policies have barely evolved for years, despite dramatic changes in business risk. For example, it is not uncommon to see money cover for cash on premises still included as standard while cyber risk is optional or absent altogether.

What is needed is a shift in how cyber insurance is positioned, promoted and sold by brokers.

Too often, cyber is raised at the very end of a renewal conversation. By that stage, clients are suffering from renewal fatigue and are keen to conclude discussions quickly. Cyber then becomes an easy ‘no’, regardless of its relevance.

The insurers seeing success in cyber today are those that have invested time and resource into structured education programmes, practical sales support and ongoing engagement.

Without a change in perception and approach, it would not be surprising to see consolidation or the withdrawal of some smaller cyber players over the coming years.

Ethan Godlieb, associate partner for cyber, tech and fintech, Consilium

Cyber-centric broker schemes are nothing new and the penetration of commercial cyber insurance has long been a challenge for a variety of reasons, not least because as a market we have not always done a good job of explaining the true value of a cyber insurance policy.

Most clients still see cyber insurance as a ‘grudge purchase’, only to be considered if absolutely necessary. For example, as a contractual obligation or after experiencing a near miss.

The truth is that most clients adopt the mentality of “it won’t be us” – until it is.

Ensuring brokers have easy access to, and choice of, cyber-centric schemes is important but our role must start with education and the demystification of cyber risk.

Brokers must be able to explain the product clearly and simply, enabling clients to make informed decisions and place cover that meets their demands and needs. In doing so, we can shift the conversation from ‘how much will this cost me?’ to ‘can I afford not to purchase this insurance?’

The industry is making cyber insurance simpler and more accessible, from clearer learning pathways and accreditations for brokers, to intuitive cyber portals that allow policies to be quoted and bound in minutes.

The tools and support are out there – clients need brokers to use them.