Kathmandu. Insurers for UK businesses have reported a 230 per cent increase in cyber insurance claim payments in 2024.
According to the British Insurers’ Association, claims amounted to $259.2 million, up from $181.6 million in 2023.
Malware and ransomware alone accounted for 51% of cyber insurance claims. This claim accounted for 32% of all cyber claims in 2023. The association highlights how sophisticated digital threats are causing even more widespread damage due to this growing demand, leading to even higher compensation payments.
As cyber threats continue to rise, demand for security increased in 2024 and 17% more policies were issued in 2024 than in the previous year, “providing clear evidence that UK businesses are prioritising protection against evolving digital risks,” the association said in a statement.
“Cyber insurance is not just a financial safety net. The right insurance not only ensures business continuity after an incident, it can also help prevent attacks through easy access to expert advice, threat monitoring, and incident response planning,” commented Jonathan Fong, Head of Non-Life Insurance at ABI, in a statement.
It suggests that cybersecurity should no longer be seen as a technology or compliance issue, but also as a strategic business risk.
