‘The JLR cyber incident showed how one shock ripples through the economy,’ said FCA chief executive
The FCA has warned that the UK is “potentially massively underinsuring” against systemic cyber and operational risks, following the cyber attack that halted Jaguar Land Rover’s (JLR) production for more than a month.
In a speech delivered at the Corporation of the City of London’s annual dinner on 22 October 2025, FCA chief executive Nikhil Rathi said the JLR incident highlighted how a single corporate disruption could cascade through the wider economy.
He said: “The JLR cyber incident showed how one shock ripples through the economy – an estimated £1 in every £160 of UK GDP tied to one firm and its supply chain.”
Rathi warned that “globally, a fraction of catastrophe and cyber risks are insured” and that “the rest migrate to company P&Ls, credit ratings, risk premia, prices and ultimately to households.”
He added: “When cover is thin, it hits the Exchequer. That, along with the impact on livelihoods, drives popular anger. We are potentially massively underinsuring.”
Most economically damaging cyber incident ever
His comments followed the Cyber Monitoring Centre’s (CMC) classification of the JLR attack as a Category 3 systemic event – the most economically damaging cyber incident ever recorded in the UK. The CMC estimated the attack caused a financial impact of up to £1.9bn and affected more than 5,000 organisations.
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“Resilience is profitable,” Rathi said. “Power stability, secure data, cyber protection – these are cash generating growth markets. So back British capability. Co-invest in firms and supply chains that can scale. Don’t leave the rewards to overseas capital.”
“The financial system – which determines how assets are insured, invested in and built – is as vital as any arsenal or base.
“Finance must be at the centre of our defence – helping to fund, insure and build the resilience on which our security depends.”
The FCA has made “hardwiring growth into regulation” a strategic priority for the next five years, with Rathi confirming that “nothing in our regulatory approach will stand in the way of investment in the UK’s security or sovereign capabilities.”
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