United Kingdom Cyber (Liability) Insurance Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 7.9% from 2023 to 2033
• The U.K. Cyber (Liability) Insurance Market Size is Expected to Hold a Significant Share by 2033

The United Kingdom Cyber (Liability) Insurance Market Size is anticipated to hold a significant share by 2033, Growing at a CAGR of 7.9% from 2023 to 2033.

The growing cases of cyber breaches and cyber attacks, data privacy regulations and business interruption are driving the growth of the cyber (liability) insurance market in the United Kingdom.     

Market Overview

Cyber (liability) insurance, also referred to as cyber security insurance, is an insurance policy that provides businesses with a combination of coverage options to help protect the company from data breaches and other cybersecurity issues. It protects businesses against financial loss resulting from a range of cyber threats and exposures, including cybercrime, data breaches, and system interruption. The liability for a data breach containing sensitive customer information, such as Social Security numbers, credit cards, account numbers, driver’s license numbers, and medical records, is typically covered by cyber insurance. Financial institutions require a comprehensive plan to manage disruption and cyberattacks due to their large operating canvass across numerous business lines. To improve clarity and get rid of “silent cyber claims”, insurers and regulators are focusing on creating independent cybersecurity insurance plans. The Prudential Regulatory Authority (PRA) and the EU GDPR are putting regulatory pressure on insurers to manage cyber risks with specialized cybersecurity insurance policies.

Report Coverage

This research report categorizes the market for the UK cyber (liability) insurance market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the cyber (liability) insurance market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the cyber (liability) insurance market.

Driving Factors

According to the survey by UK government, 32% of businesses and 24% of charities were hit by cyber breaches and cyberattacks in 2023. The increasing cyberattacks impacting the organization's operating ability surge the market growth. Consumers’ inclination toward digitalization, mobile applications, and internet banking are increasing cyber risks which is likely to upsurge the market growth for cyber (liability) insurance. Owing to the large storage volume of customer data industries like BFSI are being targeted for cyberattacks.

Restraining Factors

The concerns regarding data privacy and fear of disclosure risks are restraining the adoption of cybersecurity insurance by some enterprises which leads to hampering the market growth. Further, complexity and lack of understanding about the cyber liability insurance policies are responsible for restraining the market.    

Market Segmentation

The United Kingdom Cyber (Liability) Insurance Market share is classified into product type and end-user.

• The standalone segment dominates the market with the largest market share during the projected timeframe.

The United Kingdom cyber (liability) insurance market is segmented by product type into packaged and standalone. Among these, the standalone segment dominates the market with the largest market share during the projected timeframe. Standalone cyber liability insurance. Several cyber insurance companies are experiencing a modification in policy consumers from authorization to standalone insurance policies to decrease the threat of silent exposures in businesses. Liability coverage for losses arising from data breaches is frequently provided by this insurance. A variety of asset risks are covered by standalone policies, such as fund transfer loss, data loss or destruction, and business interruption.

• The BFSI segment accounted for the largest share of the United Kingdom cyber (liability) insurance market during the forecast period.       

Based on the end-user, the United Kingdom cyber (liability) insurance market is divided into healthcare, retail, BFSI, IT & solution, manufacturing, and others. Among these, the BFSI segment accounted for the largest share of the United Kingdom cyber (liability) insurance market during the forecast period. Cybercriminals are optimizing a wide range of illegal cyberattacks to terrorize the fiscal industry. The financial industry generates a lot of data, which makes it a prime target for hackers. Thus, the increasing incidence of data breaches and cyberattacks in the BFSI sector leads to drive the market demand.      

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the UK cyber (liability) insurance market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Allianz
• AIG
• Hiscox
• Beazley
• Marsh
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In September 2023, Cowbell announced plans to further expand its footprint in the UK market with a new senior appointment and launch of its AI-powered cyber insurance programme.

• In March 2023, Coalition, a provider of active cyber insurance, announced its entry into the excess cyber insurance market in the United Kingdom.

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom Cyber (Liability) Insurance Market based on the below-mentioned segments:

United Kingdom Cyber (Liability) Insurance Market, By Product Type

• Packaged
• Standalone

United Kingdom Cyber (Liability) Insurance Market, By End-user

• Healthcare
• Retail
• BFSI
• IT & Solution
• Manufacturing
• Others