Claud Bilbao, regional vice-president of underwriting and distribution at Cowbell UK, explains how technology can support SMEs to develop cyber resiliency for growth and strategic advantage
According to an IBM report published in July last year, the global average cost of a data breach in 2024 was $4.88m (£3.82m) – a 10% increase compared with 2023.
Many assume that figures like this only apply to large enterprises, but that is a dangerous misconception. SMEs and mid-market companies face the same types of cyber attacks, often with fewer defences and tighter margins, making the financial and operational impact even more devastating.
Despite the fact that 77% of UK SMEs lack in-house security, 32% of CEOs remain confident that a cyber attack would not impact their operations.
But here’s the truth – cyber resilience is not an add-on or a nice to have. It needs to be a priority from day one.
So, why are so many small businesses still not prioritising cyber resilience? Because they need better tools, partners and support to understand how building resilience is a business imperative.
Too often, SMEs face propositions that are overly complex, too expensive, or not customised to meet their unique needs. They are underserved by security vendors and overlooked as a segment.
How can we change that and help businesses understand the value of cyber resilience?
● Design insurance as a growth enabler: More adaptive cyber policies, coupled with actionable risk support, make a business more attractive to lenders, vendors and customers.
● Meet SMEs where they are: Utilise technology to streamline processes and remove complexity from underwriting unique SME risks.
● Be a partner: Provide SMEs with support and trusted vendors that can help assess and improve their security posture. At Cowbell, for example, we offer Cowbell Resiliency Services to help policyholders proactively manage their risks and exposure with offerings like cyber security training and recommendations from our team of experts. We also have our marketplace, Cowbell Rx, which provides policyholders with vetted cyber products and services at discounted rates.
● Equip brokers with the tools to further enhance their value: Brokers are already trusted advisors – let’s provide them with better data and education resources so they can undertake resilience conversations with confidence and credibility.
● Put data to work: SMEs generate rich, real-time digital signals. With the right tools, we can turn that into continuous underwriting intelligence, risk rating and proactive support. For example, Cowbell Factors harnesses inside-out and outside-in data and artificial intelligence (AI) to develop risk ratings that quantify insurance needs.
The SME and mid-market segment represents one of the greatest untapped opportunities in insurance.
These businesses make up over 90% of the global economy, yet have long been underserved when it comes to cyber protection. Not because the demand was not there, but because the tools to serve them efficiently and effectively simply did not exist.
Traditional underwriting models, manual processes and complex products made it nearly impossible to reach them at scale. But that’s no longer the case.
Today, with real-time data, automation, embedded distribution and AI powered risk assessment, we finally have the technology to serve this market and ensure that cyber resilience becomes a strategic advantage and growth driver.
