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UK SMEs Underestimate Cyber Risk Despite High Incident Rates

UK SMEs Underestimate Cyber Risk Despite High Incident Rates

First seen 6 Oct 2026, 10:27 UTC • •
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ThreatCluster AI
ThreatCluster •October 6, 2026 at 11:27 UTC
  • •40% of UK SMEs without cyber insurance underestimate their risk of attack.
  • •29% of uninsured SMEs have already faced a cyber incident.
  • •Confusion over insurance terminology poses liability risks for brokers.

A recent survey indicates that nearly 40% of UK SMEs without cyber insurance believe they face a low risk of cyberattacks, despite 29% of uninsured SMEs having already experienced a cyber incident. The UK's Cyber Security Breaches Survey 2025/2026 found that 43% of UK businesses faced a cyber breach or attack in the last year. This disconnect in perception poses significant risks, as attackers do not discriminate based on company size. Brokers report challenges in explaining coverage due to confusing terminology among insurers, which may lead to liability issues. The report emphasizes the need for clearer communication and understanding of cyber risks among SMEs. Markel UK, which commissioned the survey, highlights the importance of addressing these misconceptions to improve cyber insurance uptake.

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Timeline

2026-04-01
UK Cyber Security Breaches Survey published
The survey revealed that 43% of UK businesses experienced a cyber breach in the last year.
Insurancebusinessmag
2026-10-05
Markel UK survey results released
The survey showed a significant disconnect in SMEs' perception of cyber risk and actual incident rates.
Insurancebusinessmag

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Common questions

What percentage of SMEs are uninsured?
44% of SMEs surveyed reported having no cyber insurance.
What are the main risks for SMEs?
SMEs face significant risks from cyber incidents, including phishing attacks and ransomware, regardless of their size.
How can brokers improve client understanding?
Brokers need to clarify insurance terms and ensure clients understand the risks and coverage options available.