Cyber insurance tipped as commercial brokers’ biggest opportunity

UK brokers have rated cyber insurance as the new or emerging commercial insurance product with the most growth potential, securing 53.6% of the votes in a recent survey.

The survey – conducted by data and analytics firm GlobalData and released today (29 August 2025) – polled 250 insurance brokers and found that cyber insurance was viewed as over five times more promising than the next highest rated product, renewable energy insurance, which received 8.8% of votes.

Cyber insurance as a market has long experienced low penetration. Indeed, a similar survey conducted by GlobalData in the first quarter of 2025 found that 60.8% of SMEs do not hold cyber cover.

The most common reason SMEs gave for their lack of cover was a belief that it is unlikely that they would be the target of a cyber attack, cited in 40.5% of responses.

Diversified strategies

Beatriz Benito, lead insurance analyst at GlobalData, said: “Both insurers and reinsurers are diversifying their strategies to tap into emerging risks, which will support growth in the cyber insurance market.

”A greater appetite around this line of business will help soften market conditions, as an increase in capacity can help insurers combat soaring premiums.

“Despite the growing awareness of cyber risks among businesses, the adoption of cyber insurance is far from universal, with underinsurance remaining a key challenge to the industry.

”The protection gap is more pronounced among smaller businesses despite SMEs being more vulnerable of an attack. Insurers will need to tackle the protection gap through several fronts to grow the cyber insurance market.

“SMEs remain a largely untapped market and are often more vulnerable to attacks but have fewer resources to respond effectively. This makes them strong candidates for tailored cover, developing products that address their specific needs.”