UK Businesses Face Cyber Insurance Gaps Amid Rising Digital Threats

Research by Cohesity reveals that UK businesses cannot rely solely on cyber insurance to mitigate the impact of cyberattacks. A survey of 100 UK CEOs found that only 22% believe their policies cover both additional costs and lost revenue from attacks. CEOs estimate a potential revenue loss of 15.17% from cyber incidents, yet 21% have not conducted business-impact modeling. The top risks identified include data breaches, brand damage, high recovery costs, revenue loss, and production downtime. In a related report, Swiss Re highlights that underinsurance is a growing concern in the Asia-Pacific region, where many businesses are inadequately covered. The global cyber insurance market is projected to grow, but significant gaps remain, particularly for smaller enterprises. The findings emphasize the need for organizations to understand their insurance limits and prepare for potential losses beyond coverage.

Key Points: • Only 22% of UK CEOs believe their cyber insurance covers all potential losses from attacks. • CEOs estimate a 15.17% average revenue loss due to cyber incidents, with many lacking business-impact analysis. • The global cyber insurance market is growing, but underinsurance remains a critical issue, especially for smaller businesses.